Weekly Report

gbpjpy27_02_2012

The pair was able to reach the suggested target at 128.40 and settled above it last week, where this level represents 50% Fibonacci correction of the downside movement shown above, therefore the mentioned closing signals that the pair could extend the upside move towards the next target at 131.10. The negativity seen on momentum indicators could trigger some fluctuation and retesting the breached level, noting that a breach of 128.40 could postpone the suggested positive scenario.

The trading range for this week is among the major support at 126.65 and the major resistance at 132.30.

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

Previous Report

Support128.40127.25126.80125.65125.00
Resistance129.50130.00130.80131.10132.30
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 128.40, targeting 130.00 and then 131.10 and stop loss with 4-hour closing below 127.75 might be appropriate