Morning Report


The GBP/JPY pair has tested the uptrend line of the suggested harmonic CD leg at 147.50. Now, we see that the pair has been trapped between this critical support and the cluster resistance areas of 149.35. Thus; we believe that it is preparing to breach this mentioned trend line, supported by yesterday's negative closing. A break of 148.30 will ease the way for activating the bearishness over intraday basis.

The trading range for the week is among key support at 143.20 and key resistance at 153.40.

The general trend is to the downside as far as 167.40 remains intact with target at116.00.

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RecommendationBased on the charts and explanations above our opinion is, selling the pair from 149.35 targeting 147.30 and stop loss above 150.65 might be appropriate.