Weekly Report 03/05 -07/ 05 / 2010
It seems that, the market is forming the internal structure of the corrective waves A-B-C for the suggested Elliott sequence that we discussed earlier. The bearish candlestick formation along with the negative sign appearing on RS1 14 suggests that, the GBP/JPY might move downwards during this week. A break of 142.75 can add additional strength to the awaited descending movements.
The trading range for this week is among key support at 138.60 and key resistance at 147.70.
The general trend over short term basis is to the downside, targeting 126.80 as far as areas of 150.75 areas remain intact.
Support142.75141.50141.00140.50140.00Resistance143.60144.25144.80145.50146.20RecommendationBased on the charts and explanations above our opinion is, selling the pair from 143.60 targeting 140.50 and stop loss above 146.20 might be appropriate.