Daily Pivots: (S1) 136.71; (P) 137.73; (R1) 138.66; More…
Intraday bias in GBP/JPY is turned neutral with today’s strong rebound. But another fall will remain in favor as long as 140.70 resistance holds. The pattern from 142.71 should have started the third leg. Below 136.78 will target 134.40 support and then 133.03. However, break of 140.70 will invalidate this view and extend the rebound from 133.03.
In the bigger picture, rise from 123.94 is seen as a rising leg of the sideway consolidation pattern from 122.75 (2016 low). As long as 147.95 resistance holds, an eventual downside breakout remains in favor. However, firm break of 147.95 will raise the chance of long term bullish reversal. Focus will then be turned to 156.59 resistance for confirmation.
