Morning Report

gbpjpy10_08_2011

The downside bias continues and the pair settled around 125.00 as shown in image. Trading is uniform within the main descending channel, in addition to the persistent negative pressure from the 50 EMA. Therfore, we expect continuation of the intraday downside move today targeting 122.00. Positivity on momentum indicators hints that we may see some sideways movement before heading to the awaited target. Stability below 126.20 is required for our expectations to be valid.

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

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

Previous Report

Weekly Report

Support124.85124.00123.30123.00122.55
Resistance125.65126.20126.75127.25127.70
RecommendationBased on the charts and explanations above we recommend selling the pair around 125.65 targeting 122.00 and stop loss above 126.75 may be appropriate.