Daily Pivots: (S1) 138.49; (P) 138.98; (R1) 139.53; More…

Range trading continues in GBP/JPY and intraday bias remains neutral first. On the upside, break of 140.31 will resume whole rebound from 133.03 and target a test on 142.71 high. On the downside, however, break of 137.19 will argue that the pattern from 142.71 is starting another falling leg. Intraday bias will be turned back to the downside for 134.40 support and possibly below.

In the bigger picture, rise from 123.94 is seen as a rising leg of the sideway consolidation pattern from 122.75 (2016 low). As long as 147.95 resistance holds, an eventual downside breakout remains in favor. However, firm break of 147.95 will raise the chance of long term bullish reversal. Focus will then be turned to 156.59 resistance for confirmation.

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