Daily Pivots: (S1) 150.90; (P) 151.33; (R1) 151.88; More…
Intraday bias in GBP/JPY remains neutral and outlook is unchanged. The cross is now pressing 100% projection of 123.94 to 142.71 from 133.03 at 151.80 and channel resistance. Firm break of 150.43 minor support will indicate short term topping, on bearish divergence condition in 4 hour MACD. Intraday bias will be turned to the downside for correction to 55 day EMA (now at 146.16). Nevertheless, sustained trading above 151.80 will indicate upside acceleration. Next target is key resistance at 156.59.
In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). Next target is 156.59 resistance (2018 high). Sustained break there should confirm long term bullish trend reversal. On the downside, break of 142.71 resistance turned support is needed to be the first sign of completion of the rise from 123.94. Otherwise, outlook will remain bullish even in case of deep pull back.
