Weekly Report 22 -26 / 02 / 2010

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Classically speaking, the GBP/JPY pair succeeded in re-testing the broken uptrend line from below, seen on the provided weekly chart. Consequently, possible bearish movements could be seen during this week, supported by the suggested Elliott count which offers a potential downside wave to complete the IM structure. SMA 50 is still negatively pressuring the pair that adds further confirmation for the expected bearishness.

Trading range for this week is among key support at 132.40 and key resistance at 149.35.

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

Previous Report

Support141.00140.00139.25138.60137.25
Resistance142.50143.25144.15145.00146.15
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 142.50 targeting 136.70 and stop loss above 146.15 might be appropriate.