Morning Report

gbpjpy23

The pair declined sharply yesterday, where the butterfly harmonic pattern continues to affect the pair, especially after stabilizing below the bottom of point C for the pattern as shown in image. The continuation of the downside movement is likely, harmonic trading suggests that stability below point C (in our case 130.05) should extend the move toward the 127.2% projection of the CD leg, which means levels near 127.40. Stochastic failed to show positive signs yesterday, where ADX continues to move to the downside.

Trading range for the week is among the major support at 126.70 and the major resistance at 132.45.

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

Previous Report

Weekly Report

Support128.70128.30127.40126.70126.45
Resistance129.40130.05130.50130.80131.05
RecommendationBased on the charts and explanations above our opinion is selling the pair around 129.40 targeting 127.40 and stop loss above 131.05 may be appropriate for today.