Weekly Report (08-12 August 2011)

gbpjpy08_08_2011

The pair closed last week below the resistance of the descending channel shown in image above, and the 50 EMA formed a good resistance that halted upside attempts. These factors in addition to the negativity on stochastic hint that the downside move may continue this week targeting initially 124.00 and 121.80. Steady daily closing below 128.55 is required for our expectations to remain possible.

Trading range for the week is among the major support at 121.80 and the major resistance at 130.55.

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

Previous Report

Support127.70127.05126.40125.50124.85
Resistance128.55129.00129.40130.00130.55
RecommendationBased on the charts and explanations above we recommend selling the pair around 128.55 targeting 124.85 and stop loss above 130.00 may be appropriate.