Morning Report

gbpjpy17_02_2012

the pair inclined approaching the main targets around 125.65, where the pair trades now near the resistance of the ascending correctional channel as shown above. In general, we expect the intraday upside move to extend today, but the negativity seen on momentum indicators could support the current strong resistance forcing the pair to reverse to the downside towards the support of the mentioned channel. SMA 50 supports the suggested upside move.

The trading range for today is among the major support at 123.45 and the major resistance at 126.55.

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

Previous Report

Support124.40123.85123.45123.00122.60
Resistance125.40125.65126.00126.55127.00
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 124.40, targeting 125.65 and stop loss with 4-hour closing below 123.85 might be appropriate