Morning report

Having a look at the internal structure of the fifth wave of our recently captured Elliott count, we will find out that the GBP/JPY pair is forming the 5thwave of the bigger fifth as seen on our provided four-hour chart. The negative divergence is still in progress on OsMA. RSI 14 – currently located at 76.00- supports the anticipated bearishness for today. Note that 61.8% Fibonacci level of the entire declines from 163.00 zones to 139.70 is valued at 153.40 zones and it represents a very important resistance level for the time being.

Trading range for today is among key support at 147.40 and key resistance at 156.30.

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 152.60 targeting 150.35 and stop loss above 154.50 might be appropriate.