Overview

The price action from 180.36 is viewed as a consolidation pattern. A strong resistance is expected to limit the upside at 188.28 in order to finish the consolidation. Movements below 183.86 will turn bias to the downside for retesting 180.36 first. A break of 180.36 will extend the whole fall from 195.86 and should then target a test at the 174.86 key support level. This is supported by bearish divergence condition in the weekly MACD. Besides, GBP/JPY was close to the key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. A break of 174.86 will confirm a trend reversal and a bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we will be cautious about strong resistance from 199.80/200.00 to bring the reversal finally.

Daily Pivots: (S1) 185.88; (P) 186.19; (R1) 186.50