Daily Pivots: (S1) 124.67; (P) 127.12; (R1) 129.84; More…

A temporary low is formed at 123.94 in GBP/JPY and intraday bias is turned neutral first. Further fall is expected as long as 130.54 resistance holds. Break of 123.94 will extend larger decline to 122.75 long term support next. Nevertheless, break of 130.54 will indicate short term bottoming and turn outlook neutral for lengthier consolidations.

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In the bigger picture, current development suggests that price actions from 122.75 (2016 low) are merely a sideway consolidation pattern, which has completed at 147.96. Larger down trend from 195.86 (2015 high) as well as that from 251.09 (2007 high) are possibly resuming. Break of 122.75 should target 61.8% projection of 195.86 to 122.75 from 147.95 at 102.76 next. In any case, outlook will remain bearish as long as 147.95 resistance holds.

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