Weekly Report (20-24 June 2011)

gbpjpy20

The pair stabilized below the bottom of point C of the bearish Butterfly pattern, this move suggest extension of the downside move toward 127.2% of the CD leg , or even the 161.8% level , these levels are the extended targets of the pattern, therefore we believe that bearishness may dominate trading during this week. Trading below 130.05 support the downside move.

Trading range for the week is among the major support at 124.00 and the major resistance at 134.20.

The short term trend is to the downside as long as 150.75 holds, targeting 118.80.

Previous Report

Support129.05128.40127.40126.70126.00
Resistance130.00130.40131.05131.45132.25
RecommendationBased on the charts and explanations above our opinion is selling the pair around 130.00 targeting 127.40 and stop loss above 132.25 may be appropriate for the week