Overview
According to the attached H4 chart, the breach of the 184.41 minor resistance suggests that consolidation pattern from 180.36 is in the third leg. Initial bias in GBP/JPY is mildly on the upside for 188.28. Strong resistance would likely to be seen there to limit the upside and bring another decline. On the downside, a break of the 180.36 support will resume the whole fall from 195.86 and will target a test at the 174.86 key support level. GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. A break of 174.86 will confirm a trend reversal and bring a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In the longer term, the uptrend from the 116.83 long-term bottom could be topping. There is no confirmation yet, but even is case of another rise, strong resistance would be now likely to be seen near to 61.8% retracement of 251.09 to 116.83 at 199.80.
The material has been provided by InstaForex Company - www.instaforex.com