Weekly Report 15-19 / 03 / 2010

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The GBP/JPY is still forming the CD leg of our suggested duplicated bearish harmonic formation, where the Fibonacci level of 61.8% for XA leg meets 161.8% Fibonacci level of BC leg at 139.15 zones. This potential reversal zones are approaching gradually and we expect a possible reversal from there to the downside. Stochastic entered the overbought areas, supporting our bearish speculation for this week.

Trading range for this week is among key support at 131.60 and key resistance at 143.55.

The general trend over the short term basis is to the downside, targeting 126.80 as far as areas of 146.20 remain intact.

Previous Report

Support136.90135.50134.90134.00133.60
Resistance137.90138.40139.15140.00141.00
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 138.40 targeting 133.60 and stop loss above 151.75 might be appropriate.