Morning Report

gbpjpy05_08_2011

130.55 retest level halted the pair's upside move to reverse direction and close yesterday below the resistance of the main descending channel shown in image, besides stability below he 50 EMA. Accordingly, we expect the resumption of the downside move over intraday basis, targeting initially 125.25. Steady daily closing below 128.65 is required for our expectations to remain possible.

Trading range for the day is among the major support at 129.40 and the major resistance at 124.85.

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

Previous Report

Weekly Report

Support127.70127.05126.40126.10125.50
Resistance128.20128.65129.00129.40130.00
RecommendationBased on the charts and explanations above we recommend selling the pair around 128.65 targeting 125.50 and stop loss above 130.00 may be appropriate.