Great British Pound vs. Japanese Yen (2010-01-18)

The pair succeeded in forming potential reversal zones for a bearish harmonic formation, seen on the provided daily chart. The negative pressure obtained from this pattern has caused a negative weekly closing-secondary image-. Momentum and trend indicators have started to show clear bearish signs; henceforth, further downside actions are to be witnessed during this week. Areas of 151.25-151.75 should hold to protect this scenario.

Trading range for this week is among key support at 139.20 and key resistance at 155.80.

The general trend is to the downside as far as 167.40 remains intact with target at116.00.

Previous day Report

Support147.30145.50144.15142.25141.50Resistance148.60149.35151.75152.30153.40RecommendationBased on the charts and explanations above our opinion is, selling the pair from 148.60 targeting 144.60 and stop loss above 151.75 might be appropriate.