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Technical Cross
Written by article default Wednesday, 16 February 2011 11:49
Great British Pound vs. Japanese Yen (GBP / JPY)Morning Report
The pair succeeded in achieving yesterday's scenario after breaching the pivotal resistance of 134.20, while trading is presently above 135.00 areas. The pair continues moving inside the bullish channel, while the bullish effect of the pattern which we discussed several times before, is still in favor. Additionally, the pair is supported by the SMA 50 and thus we still see chances of achieving more bullishness but not before relieving momentum indicators via some kind of correction. Technical targets start at 136.80, followed by 137.50, whilst 134.20 should hold to protect this scenario.
The trading range for today is among key support at 133.40 and key resistance at 137.50.
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 | 134.55 | 134.20 | 133.40 | 132.70 | 131.95 |
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| Resistance | 135.85 | 136.50 | 136.85 | 137.50 | 138.15 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 134.55 targeting 136.85 and stop loss below 133.40 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
The pair continues facing 76.4% of CD of the bat pattern and thus we believe that the several attempts to breach the aforementioned level could send it to reach 88.6% Fibonacci at 114.40, where it meets the major harmonic resistance. Once it breaches 113.35, we may witness an obvious upside wave due to the effect of the bullish bat pattern. Momentum indicators are very close to overbought zones and Stochastic is negative and that is why areas of 112.05 should hold to keep our anticipations valid.
The trading range for today is among key support at 110.95 and key resistance now at 114.40.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 112.80 | 112.05 | 111.80 | 111.60 | 111.20 |
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| Resistance | 113.35 | 113.85 | 114.00 | 114.40 | 114.75 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 113.00 targeting 114.40 and stop loss with a four hour closing below 112.05 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
The bearish harmonic structure, discussed in the weekly report, forced us to respect it as it negated our yesterday's suggested bullishness. The royal pair started to move below 76.4% at 0.8410 and around 88.6% Fibonacci and thusb the C point might be revisited once again. Stochastic shows oversold signs and also RSI is close to oversold zones; therefore, some kind of correction might be seen before resuming the bearishness below 76.4% Fibonacci of CD leg due to the harmonic rules.
The trading range for today is among the key support at 0.8210 and key resistance now at 0.8505.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8330 | 0.8290 | 0.8245 | 0.8210 | 0.8190 |
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| Resistance | 0.8390 | 0.8410 | 0.8460 | 0.8480 | 0.8505 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8390 targeting 0.8245 and stop loss with a four closing above 0.8460 might be appropriate. | ||||