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28.09.2007 - Technical Analysis for GBPJPY

  • Description

Date: 2007-09-27 10:46

The resistance on 50% (Pic.1) of the decrease trend is becoming more and more tiresome for investors. What has to be mentioned though is that the market is giving signals to breaking this resistance and returning to the increase trend.

 

Market: GBPJPY
Interval: H1
Levels:
Support – 232.35
Resistance – 234.51, 235.16

Description:

Yesterday the market broke the last top on the level of 233.66, after which a corrective movement was initiated, which is a natural outcome of breaking the previous top. Currently the correction has reached the 41.4% retracement of the increase trend and  a pro increase candlestick formation; i.e. the hammer (Pic. 2, orange rectangle) has been formed. This is a signal that it may be the end of the current correction and that the bulls are once more headed towards the strongest resiatance at the moment, at 235.16. Breaking this level will be a strong signal that the bulls are once more in power.

Pic.1

Pic.2


Omar Arnaout