Daily Pivots: (S1) 142.74; (P) 143.00; (R1) 143.37; More…
A temporary top is formed at 143.25 with today’s retreat. Intraday bias in GBP/JPY is turned neutral for some consolidations. Downside should be contained above 139.31 support to bring rise resumption. On the upside, above 143.25 will resume the rally from 126.54. Sustained break of trend line resistance (now at 143.52) will pave the way to 148.87 key resistance next.
In the bigger picture, current rise from 126.54 is seen as the third leg of the consolidation pattern from 122.75 (2016 low). Further rally could be seen but for now, we’d expect strong resistance from 156.59 to limit upside. On the downside, sustained break of 135.74 resistance turned support will suggest that such rebound has completed. Deeper decline could the be seen to retest 126.54 low.
