Weekly Report 24/05 -28/ 05 / 2010
Within five waves to the downside, the GBP/JPY pair was able to reach the suggested technical objective of the short term at 126.80 zones from 145.95 areas as seen on the hourly chart. As a consequence, potential upside corrective A-B-C structure to complete this suggested Elliott sequence could be activated during this week. A break of 131.25 levels is needed to confirm the count. Dear reader, don't forget that the bigger picture is bearish but it is just a possible corrective rally.
The trading range for this week is among key support at 125.00 and key resistance at 136.35.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support130.00129.10128.00127.80126.80Resistance131.25132.50133.60134.45135.50RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 131.25 targeting 136.40 and stop loss below 127.80 might be appropriate.