After struggling below the downtrend line for two days, the GBP/JPY pair succeeded in breaching it yesterday and thus; we believe that it built a solid technical base to start the awaited upside correction steadily. This correction is based on the suggested Elliott count, which we discussed in details in our weekly report. A break of 131.25 is needed to accelerate this suggested bullishness towards the technical targets of the cycle. To recap, we hold onto the positive anticipations over intraday basis.
The trading range for today is among key support at 125.50 and key resistance at 134.25.
The general trend over short term basis is to the downside, targeting 126.80 as far as areas of 150.75 areas remain intact.
Support129.10128.00127.80126.80125.50Resistance130.00130.50131.25132.50133.60RecommendationBased on the charts and explanations above our opinion is, buying the pair from 129.10 targeting 132.50 and stop loss below 126.80 might be appropriate.