Daily Pivots: (S1) 140.84; (P) 141.28; (R1) 141.63; More…
No change in GBP/JPY’s outlook. Further rise is expected as long as 139.31 support holds. Current rally from 126.54 should target trend line resistance (now at 143.52) next. Sustained break will pave the way to 148.87 key resistance next. Though, break of 139.31 support will indicate near term reversal and bring deeper fall back to 135.74 resistance turned support.
In the bigger picture, current rise from 126.54 is seen as the third leg of the consolidation pattern from 122.75 (2016 low). Further rally could be seen but for now, we’d expect strong resistance from 156.59 to limit upside. On the downside, sustained break of 135.74 resistance turned support will suggest that such rebound has completed. Deeper decline could the be seen to retest 126.54 low.
