Forex Technical Update June 13, 2010 GBP/JPY Stalking Gartley Retracement
- Daily and 4H: The daily chart of the GBP/JPY shows a rally attempt projecting towards 140 area to complete a gartley retracement pattern.
- The RSI momentum shows an ability to rise above 50 and stay above its own 5-period. simple moving average.
- The RSI in the 4H chart is able to rise above 60, and the price action is breaking above the 200-period simple average. The 136.50 high is also near-term resistance.
- It should be noted that this projection goes against the overall bearish mode of the market, so it may be prudent to wait until this correction is complete. It may not turn out to be a gartley.
- The RSI may turn in the daily below 60, which would confirm the bearish mode.
- The main concept is that this is a second leg of a correction during a downtrend, so counter-trend breakout approach may be appropriate.
- If the rally is close to the channel resistance, a reversal approach may be used instead.
Fan Yang Currency Analyst Commodity Trading Advisor
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