Morning Report

gbpjpy09_08_2011

Downside pressure continues on the pair, to achieve the awaited initial target at 125.00 where it rebounded to the upside attempting to retest the breached minor support at 127.25. Stochastic is providing negative signs, therefore we will hold onto our bearish expectations over intraday basis supported by the 50 EMA and trading among the descending channel shown in image. Stability below 127.25 is important for the downside move.

Trading range for the day is among the major support at 122.00 and the major resistance at 128.50.

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

Previous Report

Weekly Report

Support126.10125.30124.85124.00123.30
Resistance126.40127.25127.70128.50129.00
RecommendationBased on the charts and explanations above we recommend selling the pair around 127.25 targeting 125.30 and stop loss above 128.50 may be appropriate.