Overview
GBP/JPY remains neutral for more sideway consolidations. So far, price actions starting from 195.86 are viewed as a consolidation pattern and we still expect strong support from 61.8% retracement of 174.86 to 195.86 at 182.88 to move downside. However, a sustained breakout of 182.88 will bring the bearish scenario to life pushing the pair towards the key support level at 174.86.
On the other hand, the uptrend from 116.83 is still in progress and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. Medium-term momentum is not too convincing with bearish divergence condition for the weekly MACD. We have to be cautious in the medium term topping around 200 awaiting a deep correction. Meanwhile, a break of 174.86 will suggest that the trend has reversed earlier than we expected.
Daily Pivots: (S1) 183.70; (P) 185.89; (R1) 187.63;
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