Weekly Report

gbpjpy26_03_2012

The pair settled on the strong pivotal support mentioned earlier around 130.05 and then rebounded to the upside to currently attack 61.8% Fibonacci correction in attempts to confirm the breach of this level. Stochastic is currently within oversold areas, which supports the suggested upside move to remain valid this week, targeting mainly 76.4% Fibonacci correction around 134.50, noting that a clear breach and consolidation above 131.10 in addition to a daily closing above 130.05 are required for our expectations to prevail.

The trading range for this week is among the major support at 129.00 and the major resistance at 134.50.

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

Previous Report

Support130.05129.00128.40128.00127.25
Resistance131.10131.75133.00133.55134.05
RecommendationBased on the charts and explanations above, our opinion is buying the pair with 4-hour closing above 131.10, targeting 133.00 and then 134.50 and stop loss below 130.05 might be appropriate