GBP/JPY may fall 145 - 217 pips

Our pivot point is at 190.33.

Our preference

The downside prevails as long as 190.33 is resistance.

Alternative scenario

The upside breakout of 190.33, would call for 191.54 and 192.25.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 190.08 and 190.37).

Supports and resistances

192.25 **

191.54 *

190.33 **

189.86

189.38 last

187.93

187.21 **

186.49 *

185.77 **

Number of asterisks represents the strength of support and resistance levels.