Daily Pivots: (S1) 127.09; (P) 127.67; (R1) 128.66; More…
GBP/JPY recovers strongly ahead of 126.54 support. Intraday bias remains neutral as consolidation is extending. Break of 130.69 will bring stronger rebound. But upside should be by 38.2% retracement of 148.87 to 126.54 at 135.07 to bring down trend resumption. On the downside, firm break of 126.54 will resume larger down trend to 122.61 support next.
In the bigger picture, outlook remains clearly bearish with GBP/JPY staying well below 55 week and 55 month EMA. Medium term fall from 156.59 (2018 high) is still in progress. Next target is 122.36 (2016 low). We’d be cautious on bottoming there. But break of 135.66 resistance is needed to be the first sign of reversal. Sustained break of 122.36 will target next key level at 116.83 (2011 low).
