Morning report


In respect tothe overbought signs that have appeared on the Stochastic; the GBP/JPY pair has slightly moved downwards, in order to re-test the broken resistance levels of 145.60-161.8% Fibonacci level, as discussed yesterday. Currently, the CD leg of our detected harmonic AB=CD pattern is to be resumed, targeting 148.60. Henceforth, we keep our suggested bullish scenario over intraday basis.

Trading range for today is among key support at 141.50 and key resistance at 151.75.

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, buying the pair from 145.80 targeting 148.40 and stop loss below 143.80 might be appropriate.