GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 205.91; (P) 206.76; (R1) 208.14; More

GBP/JPY edges further higher to 208.60 today and at this point, intraday bias remains on the upside as long as 206.29 minor support holds. Break of 208.99 resistance will confirm whole rebound from 192.60 has resumed. As discussed before, sustained trading above the short term falling channel resistance confirms that decline from 241.35 has already completed at 192.60. Further rally is expected to 210.56/211.22 resistance zone (100% projection of 192.60 to 205.09 from 198.07 at 210.56 and 38.2% retracement of 241.35 to 192.60 at 211.22). On the downside, though, below 206.29 minor support will argue that there should be one more fall to below 203.35 before completing the consolidation from 208.99 and rally resumption.

In the bigger picture, while, fall from 241.35 has completed at 192.60, there is no confirmation of the completion of whole down trend from 251.09 yet. Focus is now on the structure of the current rise from 192.60 as well as 219.32 medium term support turned resistance. Though, a break of 198.07 is now needed to shift short term bias back to the downside for retesting 192.60 low. Otherwise, further upside is still in favor, at least in short term.

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