Great British Pound vs. Japanese Yen (2011-01-17) Trading Idea

By @ibtimes on

 

Weekly Report

 

gbpjpy17

 

In some cases, the harmonic pattern completes around X point highlighted in the chart above. The upside move also confirms that this formation is acceptable, while breaching 76.4% correction of CD at 131.20 which accompanied the main resistance connecting A and C might support further upside movement this week to test top areas at C, where breaching it might extend the move towards A. Stochastic is overbought though the bullish channel keeps our bullish expectations valid.

 

The trading range for today is among key support at 128.30 and key resistance at 134.20.

 

The general trend over short term basis is to the downside targeting118.80as far as areas of 150.75 areas remain intact.

 

Support
131.20
130.50
130.00
129.80
129.00

 

Resistance
131.60
132.00
132.50
133.15
133.60

 

Recommendation
Based on the charts and explanations above, we our opinion is buying the pair around 131.20 targeting 134.20 and stop loss below 130.00 might be appropriate this week

 

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