Morning Report

gbpjpy23_02_2012

The pair traded negatively yesterday below the resistance for the ascending correction channel to breach the critical support at 125.70; this level represents the neckline for a minor bearish pattern and its full targets reside with the MA 50 at 124.70 which signals that the downside move might be temporarily especially as Stochastic offers positive signals over four-hour basis. Therefore, we remain neutral for now to confirm whether the pair will resume the downside move towards the support for the mentioned channel or if the MA 50 will prevent the pair from resuming the bearishness.

The trading range for today is expected among the key support at 123.85 and the key resistance at 128.40.

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

Previous Report

Weekly Report

Support125.00124.70123.85123.20123.00
Resistance125.70126.15126.55127.00127.35
RecommendationBased on the charts and explanations above we recommend observing trading today awaiting more confirmations