Morning Report

gbpjpy29_07_2011.gif

The pair continues attempting to breach the sideways range support at 126.65, supported by stability below the 50 EMA. Stochastic is providing clear negative signs, while a bearish technical pattern is starting to be shaped as shown in image. Accordingly, we will hold onto our expectations for a bearish bias today where a clear breach of 126.65 is required to activate it. Trading above 127.50 may delay the awaited downside move.

Trading range for the day is among the major support at 123.30 and the major resistance at 128.15.

The short term trend is to the downside targeting 112.00, as long as 150.00 remain intact.

Previous Report

Weekly Report


Support126.65126.10125.65124.85124.00
Resistance126.90127.50128.15128.55129.00
RecommendationBased on the charts and explanations above we recommend selling the pair with a breach of 126.65 targeting 124.85 and stop loss above 127.70 may be appropriate.