GBP/JPY Technical Analysis: Stuck in a range near the top end of a descending trend-channel

   •  The cross extended its sideways consolidative trading action and remained confined within a broader trading range near the top end of a short-term descending trend-channel.

   •  The channel, extending from near two-month tops set on Jan. 25, points to a well-established bearish trend, though fading safe-haven demand helped limit immediate downside. 

   •  Meanwhile, the range-bound price action constituted towards the formation of a rectangular chart pattern on the 1-hourly chart, usually seen as a continuation pattern.

   •  Neutral technical indicators on hourly/daily charts have failed to provide any directional impetus and warrant some caution before placing any aggressive bets. 

   •  Hence, it would be prudent to wait for a decisive break through the mentioned trading range in order to determine/position for the pair’s next leg of a meaningful direction move. 

GBP/JPY 1-hourly chart