GBP/JPY is expected to trade with bearish bias. The pair has broken below its previous low and is looking for a higher top. Both rising 20- and 50-period intraday MAs maintain a bearish bias. The intraday RSI is well directed. Further downside is therefore expected with the next horizontal resistance and overlap set 193 at first. A break below this level would call for a further advance towards 192.20. Only a break above the horizontal resistance at 194.50 would open the way to further strengthening towards the 195.05 low of August 11 at first.
The daily chart is still positive-biased as the MACD and stochastics are in a bullish mode.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 193. A break of that target will move the pair further downwards to 192.20. The pivot point stands at 194.50. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 195.05 and the second target at 195.40.
Resistance levels: 195.05 195.40 196
Support levels: 193 192.20 191.75
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