Weekly Report 25 -29 / 01 / 2010

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The GBP/JPY pair succeeded in breaching the lower line of the diagonal that controlled the movements of the CD leg for a bearish harmonic Gartley pattern as seen on the provided daily chart.Trading below the lower line of Keltner channel alongside bearish candlestick pattern, seen on the weekly chart argues us to keep our overview to the downside over short term basis, retargeting 141.50 zones and might extend further towards the psychological level of 140.00. Indicators support our bearish outlook.

The trading range for this week is among key support at 139.20 and key resistance at 153.40.

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

Previous Report

Support145.00144.15142.90141.50140.00
Resistance146.20147.30148.60149.35150.00
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 146.20 targeting 141.60 and stop loss above 149.90 might be appropriate.