The first potential reversal zones -D1- of our suggested harmonic AB=CD structure at 137.90 proved its strength as these levels pushed slightly the pair to the downside. The GBP/JPY pair is in a definite need for breaching this level to confirm its projected harmonic scenario over daily basis, targeting 161.8% Fibonacci of BC leg at 139.85. On the intraday basis.The pair might achieve additional downside corrective movements before resuming this scenario as RSI 14 and AROON are giving off negative signs, while the candlestick structure is bearish. Note that it is just a correction.
The trading range for today is among key support at 132.50 and key resistance at 139.10.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 136.50 targeting 134.25 and stop loss above 137.90 might be appropriate.|