Daily Trading Strategy Report: GBP/JPY - OBJECTIVE MET

Possible end to the correction from 129.93 (270 Pips Profit)

Writtern by www.imperialFXonline.com

Time: May 11th 2010, 04:40GMT

Currency Pair: Gbp/jpy
Rate : 137.00
Strategy : Target Met
Position : Short at 139.70
Objective : 137.00

Resistance levels : 140.58 / 141.61 / 142.91 / 144.05 / 145.97
Support levels : 135.76 / 133.15 / 132.00 / 131.09 / 129.93
  • Retreat from 140.58 keeps price under pressure
  • Below 133.15 needed to call for a possible resumption of decline


The sterling's early rally yesterday (boosted by improved risk appetite on a perceived stabilisation in the global stock markets) was capped at 140.58 and the pound then turned south, this near term fall suggests a possible end to the correction from last week's low at 129.93 and a bearish bias looks set to prevail at least in the short term with potential for further weakness to 137.00 and then towards 135.76 (yesterday's Asian low), a drop below the latter level would fill a small gap.

We are holding a short position with the stop lowered and only above 139.20/30 would alleviate the downward pressure and risk another rise to 140.58.


Writtern by www.imperialFXonline.com

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Written by www.imperialFXonline.com