Morning report

Since placing the recorded low of the short term around 139.70, the GBP/JPY pair succeeded to form a typical impulsive upside wave as seen in the above four-hour chart. Now, the heavy negative divergence appearing onOsMA and RSI 14 indicators along with the hanging man candlestick pattern offer potential reactionary [A-B-C] waves. Hence the intraday outlook is to the downside.

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.

RecommendationBased on the charts and explanations above our opinion is, selling the pair from 151.60 targeting 149.35 and stop loss above 153.45 might be appropriate.