Weekly Report 09/08 -13/ 08 / 2010

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The same bearish signs that we discussed in our past week reports remain unchanged as AROON up-colored in green- has penetrated the value of 70 while RSI 14 moves inside overbought areas. Thus; the GBP/JPY pair might touch the lower line of the above seen ascending channel which dominated the harmonic AB=CD pattern before resuming the major movements towards the second PRZ-potential reversal zones- of this pattern Carefully note that, our suggested bearish scenario should be treated as a correction. To conclude, we believe that possible bearishness could be witnessed during this week.

The trading range for this week is among key support at 132.50 and key resistance at 139.75.

The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.

Previous Report

Support136.20135.50134.80134.25133.60
Resistance136.80137.30138.40139.10139.75
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 136.80 targeting 133.15 and stop loss above 139.10 might be appropriate.