GBP/JPY Weekly Technical Report 10-14/11/2012

The pair failed to stabilize below 131.85 to confirm the bearishness; however, negative technical circumstances hold via trading below the channel`s main resistance. In addition, the negative divergence on momentum indicators influential as top that was confirmed by the PRZ around 132.90 remains intact. Therefore, we still expect further bearish attempts this week , realized by stability below 131.85.

The trading range expected for this week is between the key support at 129.05 and the key resistance at 135.40 .

The short-term trend is to the downside targeting 112.00 as far as 150.00 remains intact.

Support 131.85 131.00 130.60 129.75 129.05

Resistance 132.35 132.85 133.10 133.55 134.15

Recommendation Based on the chart and explanation above, our opinion is selling the pair below 132.35 targeting 131.00, 130.60 and 129.75 and stop-loss with four-hour closing above 132.85 for this week.