Overview

According to the shown H4 chart, we are favoring the scenario that consolidation pattern from 180.36 has completed at 188.79. A deeper fall is expected for a test in the 180.36/64 support zone. For the moment, the outlook remains bearish as long as 188.79 resistance holds even in case of recovery. This is supported by the bearish divergence condition in the weekly MACD. Besides, 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) 184.80; (P) 185.30; (R1) 186.10