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Technical Cross
Written by article default Tuesday, 25 January 2011 10:49
Great British Pound vs. Japanese Yen (GBP / JPY)Morning Report
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The continuous closings below 76.4% Fibonacci level of the bearish wave from 134.20 to 125.50 is technical evidence for the solidity of this resistance level as seen on the main daily chart. In the interim, the four hour chart-secondary image- offers the probability of placing the PRZ of a bearish crab pattern around the same levels. Henceforth, we may witness possible bearishness over intraday basis particularly if the pair succeeded in penetrating 131.60 zones. Conversely, areas of 133.45 should hold to solidify this constructive negative scenario.
The trading range for today is among key support at 128.40 and key resistance at 134.80.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
| Support | 131.05 | 130.50 | 129.40 | 128.40 | 127.60 |
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| Resistance | 132.50 | 133.15 | 133.60 | 134.25 | 134.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 131.60 targeting 129.40 and stop loss above 133.45 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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In addition to the harmonic "5-0" pattern, which we deeply discussed in our weekly report-we recommend reviewing it-, two new bearish signs appeared as follows:
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The bearish candlestick formation of the daily basis-secondary image-.
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The negative divergence of RSI 14.
Thereby, we still believe that the CD leg of the harmonic pattern is in progress targeting 110.00-109.70 zones but we need to witness a breakout below 112.10 areas first to make sure that the pattern is efficient enough to send the pair downwards. Note that AROON started to show signs of weakness.
The trading range for today is among key support at 110.50 and key resistance now at 114.75.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 112.10 | 111.90 | 111.60 | 111.05 | 110.50 |
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| Resistance | 112.80 | 113.15 | 113.65 | 114.25 | 114.75 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 112.10 targeting 110.00 and stop loss above 113.80 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The royal pair succeeded in activating the first previous explained step of forming the potential bearish harmonic Gartley pattern since it has inclined mildly towards 76.4% Fibonacci level of XA leg. Presently, the overbought sign of RSI 14 became clearer than yesterday as seen on the provided four hour graph and thus we the bearishness may start from the current levels. Consequently, we hold onto our bearish outlook over intraday basis, targeting 0.8445 zones.
The trading range for today is among the key support at 0.8415 and key resistance now at 0.8665.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8500 | 0.8465 | 0.8445 | 0.8415 | 0.8400 |
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| Resistance | 0.8550 | 0.8585 | 0.8605 | 0.8630 | 0.8665 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8555 targeting 0.8430 and stop loss above 0.8630 might be appropriate. | ||||