Morning Report

gbpjpy22_03_2012

The pair wasn't able to surpass the level of 133.40, where the strong resistance found there forced the pair to reverse sharply to the downside as shown above on the chart, where the pair is to retest the previously breached 61.8% Fibonacci correction, which turned into support now at 131.10. In general, the intraday upside move is still possible as the pair is still trading within the current ascending channel, noting that a breach of 131.10 might force more downside pressures, forcing the pair to extend the bearishness towards 128.40.

The trading range for today is among the major support at 131.10 and the major resistance at 135.10.

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

Previous Report

Weekly Report

Support131.75131.10130.10129.00128.40
Resistance133.00133.55134.05134.50135.10
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 131.10, targeting 133.00 and stop loss below 130.10 might be appropriate