Morning Report

gbpjpy03_08_2011

Trading settled below the support level of the range bound at 126.65, where the 50 EMA continues to pressure intraday trading negatively as shown on the four-hour chart. Therefore, we hold onto our expectations for a downside move targeting mainly the support of the main ascending channel at 122.00. Trading above 126.65 may delay the suggested scenario.

Trading range for the day among the major support at 122.00 and the major resistance at 127.50.

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

Previous Report

Weekly Report

Support125.65124.85124.00123.30123.00
Resistance126.10126.65126.90127.50128.15
RecommendationBased on the charts and explanations above we recommend selling the pair around 126.65 targeting 124.00 and stop loss above 128.15 may be appropriate.