Morning Report

gbpjpy23_03_2012

The pair closed the session yesterday below 61.8% Fibonacci correction, which suggests that the downside movement might continue until the pair reaches the support level of the correctional ascending channel shown above. On the other hand, the pair found strong support at the retest level of the previously breached resistance shown in green, accompanied with Stochastic which has been relieved from the significant negativity. Therefore, due to the technical conflict seen we remain neutral now, observing the pair's behavior around the critical levels of 130.05 and 131.10.

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

Support130.05129.00128.40128.00127.25
Resistance131.10131.75133.00133.55134.05
RecommendationBased on the charts and explanations above we remain neutral, awaiting more confirmations