Weekly Report 26/07 -30/ 07 / 2010
It is not an ideal CT formation but actually the corrective nature for the movements that started in the first week of June, which argues that the suggested Elliott count, explained several times before, is still valid. Thus, the GBP/JPY pair might move higher during this week to complete the cycle. Stochastic will force it to show some kind of downside correction to gather the momentum it needs to breach the key resistance levels of 136.20.
The trading range for this week is among key support at 130.50 and key resistance at 141.40.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support134.80134.25133.60132.50131.25Resistance135.50136.20136.80137.30138.60RecommendationBased on the charts and explanations above our opinion is, buying the pair around 134.60 targeting 139.10 and stop loss below 131.25 might be appropriate.