Morning report


The GBP/JPY pair is still forming the CD leg of our detected harmonic pattern, seen on the daily chart. Coming below 142.90-76.4% Fibonacci level of XA leg- might be able to accelerate the bearish scenario over short term basis, targeting 136.00 zones followed by 131.00 areas. Thereby potential downside movements are to be witnessed on intraday basis as far as the key resistance level of 145.50 remains unbroken.

Trading range for today is among key support at 136.05 and key resistance at 149.35.

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 from 143.60 targeting 140.00 and stop loss above 145.50 might be appropriate.