GBP/JPY dips lower and 135.00 is proving to be a little bit stubborn

• GBP/JPY trades 0.15% lower as GBP drops on mixed risk sentiment on Tuesday afternoon.
• The price could be heading back down to retest the broken trendline on the hourly chart.

GBP/JPY 1-hour chart

GBP/JPY has dipped below 136.00 again on Tuesday as GBP sentiment takes a dive. The market is still waiting for this week's Bank of England meeting where there are some bets that the central bank will add more stimulus to the market but this remains to be seen.

In the meantime, the GBP price drop has been noted against some of the other major currencies as GBP/USD and GBP/CAD are tboth trading lower. GBP is not the worst performer however as the EUR has weakened significantly against the dollar and yen.

Back to the GBP/JPY hourly chart below, the price has now dipped below both the 200 and 55 moving averages. The 55 Exponential Moving Average is currently being used as an intraday resistance zone and the price could break the 135.00 level where it stalled earlier on. 

The indicators on the chart are both looking bearish too. The Relative Strength Index is under the 50 zone and has a bearish tilt. The MACD histogram is red with the signal lines looking to cross to the downside too. 

Additional levels