GBP/JPY Technical Analysis: Bulls trying to defend descending channel support ahead of BoE

   •  Over the past two weeks or so, the cross has been correcting from near two-month tops along a descending trend-channel formation on short-term charts.

   •  Oscillators on hourly charts maintained their bearish bias and have just started gaining negative momentum on the daily chart, suggesting additional weakness.

   •  Meanwhile, the fact that the cross remains well below important intraday moving averages - 50, 100 & 200-hour SMA, further reinforce the near-term bearish outlook.

   •  However, given the recent upsurge, the channel might constitute toward the formation of a bullish continuation – flag chart pattern and thus, warrant some caution.

   •  Hence, it would be prudent to wait for a convincing breakthrough the channel support, which will confirm a bearish breakdown and open room for further downside.

GBP/JPY 1-hourly chart