Overview
According to the attached H4 chart, the break of 181.60 indicates resumption of a fall from 188.28. The intraday bias is mildly on the downside for the 180.36 low. A break will confirm resumption of the whole fall from 195.86 and a deeper decline would be seen to test the 174.86 key support level. On the upside, above 184.41, resistance will extend the sideways trading from 180.36 with another rise.
And the break of the medium-term trendline support is taken as a sign of a trend reversal. It is supported by bearish divergence condition in the weekly MACD. Besides, GBP/JPY was close to 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 the trend reversal and bring a 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) 181.30; (P) 182.30; (R1) 182.96.
