Morning Report

gbpjpy16_02_2012

The pair is trading negatively since yesterday evening to currently trade around 123.00, which indicates that the pair is pressured to the downside and could retest areas around the pivotal support between 122.25 and 121.85; however, SMA 50 is near the support level of the ascending correctional channel and supports the pair to remain within this channel. Now, we remain neutral, until we confirm our suggested targets around the mentioned pivotal support level or until we confirm the continuity of the upside move as the pair could settle for the downside correction performed yesterday.

The trading range for today is among the major support at 122.25 and the major resistance at 125.65.

The short-term trend is to the downside as far as 150.00 remains intact targeting 112.00.

Previous Report

Support122.60122.25121.85121.35120.60
Resistance123.00123.80124.25124.80125.65
RecommendationBased on the charts and explanations above we remain neutral, awaiting more confirmations