Overview
The outlook for the GBP/JPY pair did not change. A price action from 180.36 is viewed as a consolidation pattern with a choppy rise from 180.64 as the third leg. Strong resistance is expected at 188.28 to limit the upside and finish the consolidation. Movements below the 184.25 support 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. 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 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) 187.07; (P) 187.53; (R1) 188.20
