GBP/JPY currency pair rolls back after it breached the support level of 131.71. Earlier on a 4-hour chart, GBP/JPY has formed the combination of candlesticks Bearish Engulfing, thus signaling the downward movement. This candlestick formed after the currency pair could not break through the mark of 135.00, thus denoting that the bulls did not fixate here and the bears started to increase their influence.
The breakthrough of Fibonacci correctional level of 23.6 means that this viewpoint is correct. Besides, GBP/JPY has formed one more bearish combination of candlesticks Falling Three Methods. The breach of the support level of 131.71 will set a target to 130.0-130.10 for the currency pair. However, if the resistance level of 133.75 is broken through then the short positions should be cut, as it will lead to advance near 135.00.
