Overview:
Like we expected yesterday, today GBP/JPY is still failing to break the lower boundary of the bearish channel and the support level 143.15; today it has bounced from the support area. Currently, it is still trading inside the bullish channel and testing the resistance level 144.25. If the pair bounces from this resistance level and manages to break this support area, the pair will trade outside its channel and will be free to break the support level 142.50, which will indicate a new sell signal enabling to reach the 142.00 level. On the other hand, if the pair fails to break the support level 143.15 and the lower boundary of the bullish channel, the pair may reverse its bearish movement, so it will be a good opportunity to buy from few pips above 143.15 level with the target 144.20. Then we should wait the breakout of the resistance level 144.25 and closing 4H above it to open a new bullish signal with 145.00 then 145.75 level targets. The chart depicts the current sell signals, but as long as the support area and the bullish channel are unbroken, the upward trend will remain the same, invalidating the bearish outlook.
Support and resistance level:
R3(145.80), R2(145.00), R1(144.25), S1(143.15), S2(142.50), S3(142.00).
