Morning Report

gbpjpy04_08_2011

The pair inclined sharply to breach the resistance of the main descending channel that started from the top near 140.00, in addition to breaching the 50 EMA and currently approaching the retest level of the previously breached pivotal support at 130.55 shown in image. Stochastic is loosing upside momentum indicating a possible downside reversal after retesting the mentioned level, however we will remain neutral for now and monitor the pair around the sensitive retest levels at 130.55 and 128.50.

Trading range for the day is among the major support at 127.05 and the major resistance at 131.75.

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

Previous Report

Weekly Report

Support129.00128.50127.70127.05126.40
Resistance130.00130.55130.80131.30131.75
RecommendationBased on the charts and explanations above we recommend staying aside and monitoring trading around the mentioned sensitive levels.