Morning Report

gbpjpy11_08_2011

The pair continues to trade with a downside bias settling around 124.00. The descending channel effect continues as well and the bearish technical pattern which completed by the breach of the neckline at 130.55 has targets that meets with the channels' support around 121.10. Therefore, we expect the continuation of intraday bearishness today, it may be preceeded by a minor correction due to momentum indicators oversold stance. Stability above 125.05 may delay the expected move.

Trading range for the day is among the major support at 121.10 and the major resistance at 126.65.

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

Previous Report

Weekly Report

Support124.00123.30123.00122.55122.00
Resistance124.65125.05125.65126.20126.75
RecommendationBased on the charts and explanations above we recommend selling the pair around 124.65 targeting 121.10 and stop loss above 125.65 may be appropriate.