Intraday bias in GBP/JPY remains neutral for more sideway consolidations. So far, price actions from 195.86 are viewed as a consolidation pattern and we will still expect strong support from 61.8% retracement of 174.86 to 195.86 at 182.88 to contain downside. However, a sustained break of 182.88 will open up bearishness in the cross and will bring a deeper fall to the 174.86 key support level.
The uptrend from 116.83 is still in progress and would target the 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. The medium-term momentum is not too convincing with bearish divergence condition in the weekly MACD. We’d be cautious in the medium term topping around 200 and bring a deep correction. Meanwhile, a break of 174.86 will suggest that the trend has reversed earlier than we expect.
Daily Pivots: (S1) 185.02; (P) 187.50; (R1) 188.94;
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