GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 146.25; (P) 146.70; (R1) 147.09; More…

GBP/JPY’s break of 145.24 indicates resumption of fall from 149.30. It also revive the case that consolidation pattern from 143.18 has completed with three waves up to 149.30 already. Intraday bias is back on the downside for 143.18 support first. Break will extend larger fall from 156.69 to key support level at 139.29/47. This will be the preferred case as long as 147.13 minor resistance holds.

In the bigger picture, decline from 156.59 is seen as a corrective move. In case of another fall, strong support should be seen above 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) to contain downside and bring rebound. Meanwhile, break of 153.84 should confirm that the correction is completed and target 156.59 and above to resume the medium term up trend.