Overview
A decline in the GBP/JPY pair has accelerated to as low as 175.99 so far and intraday bias remains on the downside for the 174.86 key support level. A solid break there will indicate a larger trend reversal and target 100% projection of 195.86 to 180.36 from 188.79 at 173.9 first. On the upside, movements above 178.10 minor resistance will turn bias neutral and bring consolidation first. But the near-term outlook will stay bearish as long as the 180.36 resistance turned into support holds. In the medium term, a reversal with bearish divergence condition is possible in the weekly MACD ahead of cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. A solid 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 and below. In case of another rise, we will be cautious about strong resistance from 199.80/200.00 to bring the reversal finally.
Daily Pivots: (S1) 176.41; (P) 177.56; (R1) 178.17
The material has been provided by InstaForex Company - www.instaforex.com