As noted before, price actions from 180.36 are viewed as a consolidation pattern. Choppy recovery from 180.64 is viewed as the third leg. While further rise might be seen, strong resistance at 188.28 is expected to limit a movement upside to finish the consolidation. A breakout at 180.36 will extend a fall from 195.86 and should then target a test at the key support level of 174.86. 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 break at 174.86 will confirm trend reversal and bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we should be cautious as strong resistance at 199.80/200.00 is expected to bring reversal.
Overview
As noted before, price actions from 180.36 are viewed as a consolidation pattern. Choppy recovery from 180.64 is viewed as the third leg. While further rise might be seen, strong resistance at 188.28 is expected to limit a movement upside to finish the consolidation. A breakout at 180.36 will extend a fall from 195.86 and should then target a test at the key support level of 174.86. 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 break at 174.86 will confirm trend reversal and bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we should be cautious as strong resistance at 199.80/200.00 is expected to bring reversal.
Daily Pivots: (S1) 185.30; (P) 185.68; (R1) 186.22;
The material has been provided by InstaForex Company – www.instaforex.com
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