GBP/JPY is expected to trade in a lower range as the pair is under pressure now. The pair is consolidating below its 20-period and 50-period MAs. A further decline is expected. The downside prevails, as long as the nearest key resistance at 184.15 holds on the upside. Furthermore, the intraday RSI is negative below its neutrality area of 50. Therefore, our next down targets are set at 182.60 and 182 (Fibonacci projection).
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 182.60. A breakout of that target will move the pair further downwards to 182. The pivot point stands at 184.15. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 184.95 and the second target at 186.
Resistance levels: 184.95 186 186.75
Support levels: 182.60 182.00 181.35
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