Forex Technical Update August 18, 2010
 GBP/JPY - Stalking Pullback after Breakout from Congestion
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  • 4H and 1H: The GBP/JPY tested the rising support that can be seen in the daily chart below. The daily chart, and the last GBP/JPY update also suggested a rally from here for wave E to complete a consolidation pattern.
  • The 4H chart shows a reversal candlestick combination right at this rising support. This comes after a breakout from a smaller congestion pattern. The 1H chart shows this breakout from congestion in more detail. After testing 132.45, the market rallied to the 50% fibonacci retracement level.
  • This is still a pullback, and we can't be bullish just yet. The RSI remains below 60, and the pullback should break above 61.8% or 134.00 to initiate the short to intermediate term bullish consideration (shown in the daily chart below). To be more clear, the time-frame is about 1-2 weeks towards 1.38.
  • Again, there hasn't been a confirmation in the lower time-frame, and no signal in the daily, so this outlook may be 1 or 2 sessions early.

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  Fan Yang
Currency Analyst
Commodity Trading Advisor

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