We will retain our previous outlook for GBP/JPY. The pair is still expected to trade with a bearish bias. Though the pair posted a rebound, the upward potential is likely to be limited by the resistance at 151.55. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited.
To conclude, as long as 151.55 is not surpassed, a return to 150.10 and even to 149.70 seems more likely to occur.
Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 151.55 with the target at 151.80.
Strategy: SELL, Stop Loss: 151.55, Take Profit: 150.10
Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot points, it indicates short positions. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 151.80, 152.25 and 152.80
Support levels: 150.10, 149.70, and 149.00
The material has been provided by InstaForex Company - www.instaforex.com