Morning Report

gbpjpy20_10_2011

The pair reversed to the downside, attempting to breach the 120.80 retest level. Now, there is a bearish technical pattern with neckline at 120.45, breaching this level opens the door toward 119.10. Stochastic supports the negative expectations which requires stability below 122.10.

The trading range for the day may be among the 118.10 support and 122.10resistance.

The short term trend is to the downside targeting 122.00 so long as 150.00 remain intact.

Previous Report

Weekly Report

Support120.80120.45120.00119.75119.10
Resistance121.30121.80122.10122.60123.35
RecommendationBased on the charts and explanations above we recommend selling the pair with hourly closing below 120.45 targeting 119.10 and stop loss with hourly closing above 121.50 might be appropriate.