Overview
A decline in the GBP/JPY pair is still in progress and intraday bias remains on the downside for 100% projection of 195.86 to 180.36 from 188.79 at 173.9. A decisive break there will target the next long-term Fibonacci level at 165.67. On the upside, movements above 176.15 minor resistance will turn bias neutral and bring consolidations. But the near-term outlook will stay bearish as long as 180.36 resistance turned into support holds. A fall from 196.85 is currently viewed as a correction and would first target 38.2% retracement of 116.83 to 195.86 at 165.67. We asses the depth of the correction based on reactions to 165.67 and the structure of the decline. A break of 180.36 will bring a rebound, but we expect the strong resistance to limit the upside and bring another fall to extend the corrective pattern.
Daily Pivots: (S1) 173.81; (P) 174.98; (R1) 175.88
The material has been provided by InstaForex Company - www.instaforex.com