Midday Report

The GBP/JPY pair moved sharply downwards, activating the clear heavy negative divergence discussed this morning as seen on our provided four-hour chart. This divergence offered a potential short term Elliott count which shows how the pair succeeded in building an impulsive upside wave. Consequently, the [A-B-C] correction is under way. Therefore, we keep our overview to the downside for the rest of the day.

The trading range for today is among key support at 145.50 and key resistance at 155.80.

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

RecommendationOur morning expectations remain valid