Morning report


The GBP/JPY pair found a potential support around 50% Fibonacci level of the XA leg for the suggested harmonic [Bat] pattern that may slow down the aggressive bearishness and may push towards 147.40 zones-support turned into resistance- before resuming the suggested downside rally. We keep our proposed negative scenario over intraday basis. StochasticandAROON still support our overview. Targets reside at 144.85 followed by 141.60 over the short term basis.

Trading range for today is among key support at 141.60 and key resistance at 153.40.

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 at 147.30 targeting 144.90 and stop loss above 149.35 might be appropriate.