The collapse towards the full correctional level of Fibonacci at 139.00 areas has opened the door for the GBP/JPY pair to seek for extended target for our suggested harmonic structure, seen on the daily chart. Now, the bounce form 139.25 areas is a normal technical effect from facing this cluster support. We expect that, the pair might re-test the pivotal resistance areas of 141.60 before resuming the downside rally towards the technical target of [D2] areas at 136.05-127 % Fibonacci of our suggested XA leg- at 136.05 over short term basis. Thereby, further bearishness is to be witnessed over intraday basis.
Trading range for today is among key support at 136.05 and key resistance at 147.40.
The general trend is to the downside as far as 167.40 remains intact with target at116.00.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair from 141.60 targeting 139.20 and stop loss above 143.60 might be appropriate.|