Morning Report

gbpjpy27_01_2012

The pair reversed after touching 122.00, to currently trade around the awaited retest level at 120.70. In general, our bullish expectations remain valid, affected by the bullish technical pattern that was completed by breaching 120.15 and the initially target was acquired however the complete target at 123.00, we think that the current bearishness is a mere correction of the latest bullish wave. Breaching 120.25 will push us to reconsider our bullish expectations.

The trading range for the day is expected among the key support at 120.00 and the key resistance at 123.00.

The short term trend is to the downside as far as 150.00remains intact with targets at 112.00.

Weekly Report

Support120.70120.25119.50119.10118.55
Resistance121.35121.80122.25122.60123.00
RecommendationBased on the charts and explanations above we recommend buying the pair around 120.70 targeting 122.25 and stop loss below 120.00 may be appropriate