Daily Pivots: (S1) 144.48; (P) 145.49; (R1) 147.26; More…
GBP/JPY rebounded strongly after pull back from 148.57 finished at 143.72. More importantly, current development suggests that rebound from 131.51 is still in progress. Intraday bias is turned back to the upside for 148.75 first. Break will target 149.48 key resistance next. On the downside, break of 143.72 will resume the pull back from 148.57 to 141.00 support.
In the bigger picture, the strong rebound from 131.51 suggests that medium term fall from 156.59 (2018 high) has completed already. The corrective structure of such decline in turn argues that it’s the second leg of the corrective pattern from 122.36 (2016 low). And this pattern is starting the third leg. On the upside, decisive break of 149.48 will pave the way to 156.59 resistance and above. However, firm break of 141.00 support will dampen this view and turn focus back to 131.51 low instead.
