Morning report

The GBP/JPY pair is still preparing for a downside correctional movement as we discussed in our Friday's report. The obvious negative candlestick formation around the extended wave of the bearish harmonic pattern proves that the intraday outlook is to the downside, supported by OsMA, RSI 14 and AROON bearish signs. Areas of 150.80 should hold to protect our scenario.

Trading range for today is among key support at 142.25 and key resistance at 155.80.

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 148.40 targeting 145.75 and stop loss above 150.80 might be appropriate.