Morning Report


In addition to the suggested harmonic CD leg of the under preparation [Bat] pattern, seen on the four-hour chart, the GBP/JPY pair is activating a rounding tops pattern with a neckline at 148.60 zones. Stochastic has crossed over negatively. Hence, potential negative outlook is to continue over intraday basis unless a clear breakout occurs above 151.75 zones.

The trading range for today is among key support at 143.60 and key resistance at 154.60.

The general trend is to the downside as far as 167.40 remains intact with target at116.00.

RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 149.30 targeting 146.90 and stop loss above 151.25 might be appropriate