Morning Report


The GBP/JPY pair approached the detected technical target of yesterday's explained bullishness at [147.30-147.40] zones. We have to notice that the allover structure is bearish, depending on starting to be negatively affected by the bearish harmonic formation, since we believe that the bullishness has been limited earlier around the recorded high of 146.95. Thus, the potential reversal zones is to be activated, pushing the pair to the downside over intraday basis. A breakout below the uptrend line will accelerate today's anticipated negative scenario.

Trading range for today is among key support at 141.50 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 from 146.50 targeting 148.60 and stop loss above 143.80 might be appropriate.