Overview
In the context of in GBP/JPY pair, focus is back on 61.8% retracement of 174.86 to 195.86 at 182.88. Sustained trading there is an early sign of larger trend reversal that cpould result in a deeper fall back to the key support level of 174.86. Meanwhile, strong rebound from the current level would send GBP/JPY towards a new high above 195.86. But there is still not enough evidence for mid-term reversal yet. The uptrend from 116.83 could extend to 61.8% retracement of 251.09 to 116.83 at 199.80, which is closer to the psychological level of 200. Meanwhile, consider bearish divergence condition in the weekly MACD. A break of support at 174.86 will suggest that the trend has reversed earlier than we expect.
