Weekly Report 12/07 -16/ 07 / 2010
The GBP/JPY is still attacking the upper line of our suggested CT corrective structure very strongly and at the same time where Stochastic has just completed a bullish harmonic formation, accompanied by positive crossover. Thereby, we still see chances for completing the previous explained Elliott count. A break of 134.80 will clear the path for the pair to reach 136.20 areas, followed by 137.30. Note that, areas of 130.50 should hold to keep the proposed positive scenario valid.
The trading range for this week is among key support at 128.70 and key resistance at 138.60.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support133.15132.50131.25130.50129.75Resistance134.25134.80135.50136.20136.80RecommendationBased on the charts and explanations above our opinion is, buying the pair around 133.15 targeting 137.30 and stop loss below 130.50 might be appropriate.