Morning Report

gbpjpy06_03_2012

The pair is still stable above 128.40 and attempts now to settle above 129.00, where the pair is pressured by the negativity seen on momentum indicators. In general, consolidation above 128.40 could support the correctional upside move to extend today, affected by the double bottom pattern. Consolidation above this level is necessary to confirm our expectations, while a breach of 128.40 will weaken the possibility of achieving our suggested targets which start at 130.80.

The trading range for today is among the major support at 127.65 and the major resistance at 131.30.

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

Previous Report

Weekly 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