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  • The intraday upsurge fails to sustain above an ascending trend-channel resistance.
  • Overbought conditions on hourly charts might have prompted some profit-taking.

The GBP/JPY cross trimmed a part of its early strong gains to the highest since May 21 and quickly retreated nearly 100 pips from an intraday swing high level of 141.50, with bulls struggling to sustain above a short-term ascending trend-channel.
Extremely overbought conditions on hourly charts seemed to be the only factor that prompted some profit-taking amid a flurry of Brexit-related headlines. The cross now seems to have stabilized near 61.8% Fibonacci level of the 148.88-126.54 slide.
Any subsequent pullback below the key 140.00 psychological mark might find some support near the 139.70-65 horizontal zone, below which the corrective slide could extend towards the trend-channel support – around the 138.80 region.
On the upside, the 140.60 region now seems to act as an immediate resistance and is closely followed by the trend-channel hurdle near the 141.00-141.10 area, which if cleared will set the stage for an extension of the recent bullish trajectory.

GBP/JPY 1-hourly chart