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18.09.2007 - Technical Analysis for GBPJPY

  • Description

We are currently encountering a very interesting situation on the GBPJPY market. Why? Due to the fact that we are getting closer to the markets decision to what to do next.

Market: GBPJPY
Interval: H1
Levels:
Support – 228.15, 227.37
Resistance – 230.84, 231.44

Description:

The current corrective movement (Pic. 1, K2) reached the 88.6% of the previous correction, and later formed a pro decrease candlestick formation; i.e. the shooting star formation (Pic. 1, pink rectangle). This suggests that the bears are growing in power. The question is: how long?? The first level of resistance will be the level of the precious bottom at 228.15. On the other hand I believe that breaking the level of 227.37 will be a strong declaration of the power of the bears. If this level is broken than I believe that the market could even fall to the level of 221.83. Stops are possible though, on the levels of 224.02 and 222.77.

On the other hand the market could bounce off the levels of the previous bottoms and return to the increase trend. A strong signal to this would be the breaking of the 230.84 and 231.44 levels.

Pic. 1


Omar Arnaout