Fundamental Overview:

GBP/JPY is expected to consolidate in lower range.It is undermined by the soft USD/JPY undertone and Japan exporter sales. GBP sentiment is dented by the weaker-than-expected CIPS/Markit U.K. September manufacturing PMI of 51.6 (versus forecast 53.0). GBP/USD is also weighed by the sterling sales on soft GBP/JPY cross amid increased investor risk aversion and sterling sales on rebounding EUR/GBP. But GBP/USD losses are tempered by weaker USD sentiment. But GBP/JPY losses are tempered by the demand from Japanese importers.

Technical Comment:
Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 174.50. A break of this target will move the pair further downwards to 174. The pivot point stands at 176.05. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 176.65 and the second target at 177.10.

Resistance levels:
176.65
177.10
177.45
Support levels:
174.50
174
173.65