The pair is still undergoing the downside correction for the upside channel that started on 20-3-2008 and ended on 22-7-2008 where the bearish movements were limited by the 50% correctional level as we have seen it become a strong support for the pair. According to technical indicators, the pair might move to the upside on the intraday basis yet on the daily charts, the pair lacks bullish momentum and the movement remains weak. The 50% correctional level at 160.83 provides good demand for the pair.

Momentum indicators have adjusted on the charts to take the pair away from the oversold area yet downside pressures remain according to direction indicators. The downside target at 201.43 which is the 61.8% correctional level for the upside wave that started on 17-03-2008 and ended on 23-7-2008 that we have pointed out yesterday have been reached but as it has now become stronger, it  rebounded the pair to the upside to currently reach the 202.30s. A good buying point for the GBP/JPY pair is 201.43

Still in a sideways correction, yet momentum indicators have adjusted for the pair to exit the overbought area as it failed to breach the resistance level it had retested at 0.8002 to take the pair down to the 0.7956 level where it has now become a strong obstacle and offers good demand for the pair.