Forex Technical Update June 23, 2010  GBP/JPY: More Evidence for Bearish Outlook  

  • 4H and 1H: The 4H chart shows that momentum may have started to become bearish. However inability for the RSI in this time-frame to break below 40 fails to confirm this. The RSI reflects price action which has been consolidating sideways, or a triangle pattern.
  • The 1H chart shows that the rally since yesterday may be over in the form of a gartley retracement pattern. There was not exactly an ab = cd type of equality, but the retracement met resistance at 61.8% at 134.90.
  • If the market breaks below 133.90, it is in likely to be in a swing towards 132.05, a full projection from a previous down swing.
  • This would also break below the support of the triangle seen in the 4H chart, adding more evidence for the bearish outlook seen in the previous GBP/JPY update.

  Fan Yang Currency Analyst Commodity Trading Advisor

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.

All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.