Great British Pound vs. Japanese Yen (2011-01-31)

on January 31 2011 1:54 AM

Weekly Report

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The pair reached the support for the ascending channel shown above, and at the same time reaching this support completes the formation of the bullish harmonic pattern mentioned in our reports on Friday. Therefore, we await the completion of the scenario targeting its neckline at 132.70. We expect the pair to move to the upside this week affected by trading within the ascending channel and the pattern awaited to be activated. Nevertheless, breaching 129.80 and stability below it with daily closing might push the pair to retest the breached resistance for the downside wave now turned into support at 128.40.

The trading range for this week is among the key support at 128.40 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.

Support129.80129.40128.40128.00127.40Resistance130.40131.15132.00132.70133.40RecommendationBased on the charts and explanations above, our opinion is buying the pair with four-hour closing above 130.40 targeting 132.70 and stop loss below 129.40 might be appropriate

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