Morning report

GBP/JPY pair is slowly forming a four-hour reversal candlestick pattern as seen on the secondary four-hour chart, while the bigger picture of the daily timescale is negatively pressuring the pair according to our previous explained Elliott sequence. Therefore we keep our overview to the downside on the intraday basis. Note that it's still moving below the lower line of Keltner channel, supporting the negative outlook.

Trading range for today is among key support at 137.50 and key resistance at 149.30.

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

RecommendationBased on the charts and explanations above our opinion is, selling the pair from 143.90 targeting 141.50 and stop loss above 145.90 might be appropriate.