With 186.00 minor resistance intact, a further fall is still expected in the GBP/JPY pair. A consolidation pattern from 180.36 was completed at 188.79. A deeper fall is expected to test the support zone of 180.36/64. Above minor resistance of 186.00, a bias will turn neutral again. But we will maintain this bearish view as long as resistance of 188.79 holds. This is supported by bearish divergence condition in the weekly MACD. Also, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the psychological level of 200. A breakout at 174.86 will confirm 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 should be cautious on strong resistance from 199.80/200.00 which can finally bring reversal.
Overview
With 186.00 minor resistance intact, a further fall is still expected in the GBP/JPY pair. A consolidation pattern from 180.36 was completed at 188.79. A deeper fall is expected to test the support zone of 180.36/64. Above minor resistance of 186.00, a bias will turn neutral again. But we will maintain this bearish view as long as resistance of 188.79 holds. This is supported by bearish divergence condition in the weekly MACD. Also, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the psychological level of 200. A breakout at 174.86 will confirm 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 should be cautious on strong resistance from 199.80/200.00 which can finally bring reversal.
Daily Pivots: (S1) 184.46; (P) 185.17; (R1) 186.34;
The material has been provided by InstaForex Company – www.instaforex.com
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