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Technical Cross
Written by article default Thursday, 24 February 2011 11:16
Great British Pound vs. Japanese Yen (GBP / JPY)Morning Report
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In line with yesterday's classical scenario, the pair collapsed below 38.2% Fibonacci of the upside rally from 129.50 to 135.50. This sharp decline is seen as normal price behavior, due to the bearish effect of the double top pattern highlighted in our weekly report. Presently, more bearishness could be seen today since the pair did not reach the scientific technical objective of the pattern, while candlestick formations are definitely bearish. Furthermore, AROON gave off an obvious negative sign, confirming the strength of the recently established bearish correction. Fibonacci level of 61.8% is under our technical microscope for the time being.
The trading range for today is among key support at 130.50 and key resistance at 135.50.
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 | 132.50 | 132.00 | 131.60 | 131.10 | 130.50 |
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| Resistance | 133.60 | 134.25 | 135.00 | 135.80 | 136.20 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 133.60 targeting 131.20 and stop loss above 135.35 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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Resuming our technical classical series for the pair, which we started with the opening of this week, pivotal resistance around 114.00 zones forced the pair to move downwards violently as we anticipated yesterday. Additionally, the pair came below SMA 50 confirming that the retesting action of the previous broken uptrend line of the bullish rally from 106.80, which might have been ended. RSI and Vortex are showing negative signs, supporting negative outlook.
The trading range for today is among key support at 111.05 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 | 112.80 | 112.40 | 112.10 | 111.60 | 111.05 |
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| Resistance | 113.65 | 114.00 | 114.25 | 114.75 | 115.40 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 113.25 targeting 111.60 and stop loss above 114.80 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The pair inclined towards the previous detected initial resistance of 0.8480-8500 zones once more. These levels represent 50% Fibonacci of CD leg of our suggested double Gartley pattern, while RSI is very close to overbought areas. Actually, there is no clear sign to say that the extended targets might have been limited at 88.6% of CD leg since there is a chance for retargeting the extended levels once more due to the aforesaid sign and the solidity of the above mentioned resistance. In the interim, SMA 50 is carrying the movements from below and thus, this contrarian between the technical factors makes us staying aside today until we get clearer signs.
The trading range for today is among the key support at 0.8355 and key resistance now at 0.8605.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8460 | 0.8445 | 0.8420 | 0.8380 | 0.8355 |
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| Resistance | 0.8500 | 0.8515 | 0.8540 | 0.8575 | 0.8605 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||