Daily Pivots: (S1) 139.90; (P) 140.94; (R1) 141.50; More…
The break of 140.43 minor support argues that GBP/JPY’s rebound from 136.44 has completed at 144.77 already. And, the correction from 148.42 is starting the third leg. Intraday bias is mildly on the downside for 136.44 support and possibly below. At this point, we’d expect strong support from 50% retracement of 122.36 to 148.42 at 135.39 to contain downside and bring rebound. On the upside, above 144.77 will extend the rise from 136.44 to 148.42 high.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. Main focus is on 38.2% retracement of 195.86 to 122.36 at 150.42. Rejection from there will turn the cross into medium term sideway pattern with a test on 122.36 low next. Though, sustained break of 150.42 will extend the rebound towards 61.8% retracement at 167.78.
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