Great British Pound vs. Japanese Yen (2011-03-04)

By @ibtimes on

Morning Report

The pair is trapped within a tight range since yesterday but we see how it could have been able to stabilize above 61.8% Fibonacci retracement of the downside wave from 135.50 to 135.50 -secondary image. At the same time, we have a technical obstacle at 76.4% retracement; whilst the candlestick structure is definitely negative. We will depend on this correctional level in addition to the bearish signs of the weekly chart in order to suggest potential downside move over intraday basis. Areas of 133.65 should be breached to confirm this scenario, otherwise the pair will be able to retest 100% or rather the full correctional level at 135.50 at least.

The trading range for today is among key support at 131.60 and key resistance at 136.80.

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

Weekly Report

Support133.65133.15132.50131.65131.05Resistance134.20135.00135.50136.20136.80RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 133.65 targeting 131.05 and stop loss above 135.20 might be appropriate.

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