The fall in GBP/JPY from 188.79 has resumed after a brief consolidation, and intraday bias is back on the downside. The consolidation pattern from 180.36 has been completed at 188.79. A deeper fall is expected for a test in the 180.36/64 support zone. The minor resistance above 186.00 will make bias neutral again. But this bearish view will be maintained as long as the 188.79 resistance holds. This is supported by a bearish divergence condition in the weekly MACD. Besides, GBP/JPY was close to the key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 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 case of another rise, we will be cautious about the strong resistance from 199.80/200.00 to bring the reversal finally.
Overview
The fall in GBP/JPY from 188.79 has resumed after a brief consolidation, and intraday bias is back on the downside. The consolidation pattern from 180.36 has been completed at 188.79. A deeper fall is expected for a test in the 180.36/64 support zone. The minor resistance above 186.00 will make bias neutral again. But this bearish view will be maintained as long as the 188.79 resistance holds. This is supported by a bearish divergence condition in the weekly MACD. Besides, GBP/JPY was close to the key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 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 case of another rise, we will be cautious about the strong resistance from 199.80/200.00 to bring the reversal finally.
Daily Pivots: (S1) 183.58; (P) 184.60; (R1) 185.25
The material has been provided by InstaForex Company – www.instaforex.com
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