Overview
Intraday bias remains downward in the GBP/JPY pair for next long-term Fibonacci level at 165.67. On the upside, the bias will turn neutral and bring the first consolidation above minor resistance at 173.35. But recovery should be limited below the level of 180.36 where support turned resistance resulting in a fall resumption. The current development confirmed medium-term topping at 195.86 on condition of bearish divergence in the weekly MACD. A fall from 195.86 is currently viewed as a correction and would first target 38.2% retracement of 116.83 to 195.86 at 165.67. We should assess the depth of correction based on reactions to 165.67 and the structure of the decline. A breakout of 180.36 will bring a rebound but we expect strong resistance to bring another fall to extend the corrective pattern.
Daily Pivots: (S1) 169.14; (P) 169.82; (R1) 170.82;
