Morning Report

gbpjpy

The paircontinues moving within a harmonic structure, where we currently witnessed signs of a bearish channel appearing and protecting the bearish direction that is expected to continue. Trading below 148.85 will keep the bearish short term direction intact; whereas if 144.40 remains intact the bearish intraday direction will prevail today. Meanwhile, the pair could attempt to descend to retest 138.90, the 61.8% extension level, where breaching it will cause the pair to head towards the next target at 100% extension at 130.00. From here we see that the pair's direction could be bearish over intraday basis; MACD clearly remains trading negatively supporting our expectations.

The trading range for today could be between support 136.05 and the key resistance at 147.40.

The general trend is to the downside as far as 167.40 remains intact with targets at 116.00.

Support140.50140.00139.25138.60137.80
Resistance141.60142.25143.00143.60144.15
RecommendationBased 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