Weekly Report 29/03 -02 / 04 / 2010

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The GBP/JPY pair is seeking for potential reversal zones-PRZ- for the captured bearish harmonic BAT pattern, seen on the provided four-hour chart. The mixture studies between Elliott and harmonic analytical school, suggesting that the pivotal resistance areas of 139.10 could act the role of reversal. Thereby, we believe that the direction of this week might be to the downside.

The trading range for this week is among key support at 132.40 and key resistance at 143.60.

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

Previous Report

Support137.40136.20135.50134.45133.60
Resistance139.10140.00140.85141.50142.75
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 139.10 targeting 134.70 and stop loss above 142.75 might be appropriate.