Daily Pivots: (S1) 135.66; (P) 136.42; (R1) 137.33; More…
Intraday bias in GBP/JPY remains neutral for consolidation below 137.88 temporary top. Some consolidation could be seen but downside should be contained well above 130.42 support to bring rise resumption. On the upside, above 137.88 will target 61.8% retracement of 148.84 to 126.54 at 140.33. Firm break there will pave the way to 148.87 resistance next.
In the bigger picture, consolidation pattern from 122.75 (2016 low) is still in progress with rise from 126.54 as the third leg. Further rise should be seen back to 148.87/156.59 resistance zone. For now, we’d expect strong resistance from there to limit upside. And, this will remain the favored case as long as 130.42 support holds.
