Morning Report


Yesterday's long black candlestick structure signaled that, the GBP/JPY pair is negatively affected by the bearish harmonic AB=CD pattern as seen on the provided daily chart. The pair is currently trading around a very sensitive level but we believe that it will be breached, supported by the negative signs appearing on indicators. Thereby, the allover for today could be bearish with targets at 139.10 followed by 138.60 zones.

The trading range for today is among key support at 138.60 and key resistance at 145.50.

The general trend over short term basis is to the downside, targeting 126.80 as far as areas of 150.75 areas remain intact.

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RecommendationBased on the charts and explanations above our opinion is, selling the pair from 142.05 targeting 138.65 and stop loss above 144.10 might be appropriate.