Morning report

The negative divergence that's appearing on RSI 14 probably will assist the pair to activate the bearish harmonic AB=CD scenario as we discussed several times before. We can't neglect that if the GBP/JPY pair couldn't maintain levels above the key resistance of 149.35 then a double top formation may be created on the four-hour chart with a neckline around 147.10 zones. Hence our outlook will be kept to the downside on the intraday basis.

Trading range for today is among key support at 143.40 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 149.35 targeting 146.70 and stop loss above 151.25 might be appropriate.