GBP/JPY Technical Analysis: Descending channel favors bearish traders, EU Brexit summit awaited

   •  The cross has been trending lower along a descending trend-channel formation on hourly charts, albeit bulls showed some resilience below the key 145.00 psychological mark.

   •  The fact that the cross remains well below its important intraday moving averages - 50, 100 & 200-hour SMAs, support prospects for a further near-term depreciating move.

   •  Moreover, oscillators on 4-hourly/daily charts have moved on the verge of falling into the bearish territory and add credence to the negative outlook ahead of the EU Brexit summit.

   •  However, traders are likely to wait for a sustained weakness below the mentioned handle before positioning for a slide towards the channel support, currently near the 144.50-45 region.

   •  A follow-through selling will confirm a near-term bearish breakdown and turn the cross vulnerable to extend the downfall towards retesting the 143.80-70 strong horizontal support.

GBP/JPY 1-hourly chart