Weekly Report

gbpjpy05_03_2012

The pair is trading negatively approaching the retest level of 128.40, which represents the previously breached 50% Fibonacci correction, where momentum indicators are forcing negative pressures on the pair. On the other hand, SMA 50 continues to support the pair from below, which supports our suggested upside correctional move to remain valid this week. The suggested inclined requires mainly a daily closing above 128.40 and trading above 129.00 again.

The trading range for this week is among the major support at 127.10 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

Support128.40127.65127.10126.65125.65
Resistance129.00130.00130.80131.10132.30
RecommendationBased on the charts and explanations above, our opinion is buying the pair with 4-hour closing above 129.00, targeting 130.80 and then 132.30 and stop loss below 128.40 might be appropriate