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06-25-2012, 02:24 PM #1
GBP/JPY Technical Levels and Trading Recommendations for June 25, 2012
Overview
Proceeding from today's H4 chart, the pair takes a downward move after its rebound from the Resistance level 125.25 yesterday. Presently the pair is trying to break the Support level 124.45 and the upward trend line trying to close 4H below. If the pair continues its bearish movement and manages to break this Support level this will be a strong indicator the bearish move open the way towards the Support level 123.75, then we should wait for breaking this level to continue the bearish view enabling the Support level 123.00.
On the other hand, If the pair doesn't break the Support level 124.45 and bounces from it, this may be a good opportunity for the bullish move enabling the Resistance level 125.25 once again. If the pair is able to break the Resistance level and close 4H above this will denote the bearish strength providing new buy - signals till reaching the Resistnace level 125.65. Based on the given H4 chart, the technical indicators provide sell - signals, but as long as the Support level 124.45 and the upward trend line are unbroken and the pair closes 4H below, the upward move is still expected and invalidating the bearish outlook. Therefore we should wait more confirmations before making the decsion.
Resistance and Support levels:
R3(126.30)
R2(125.65)
R1(125.25)
S1(124.45)
S2(123.75)
S3(123.00)
Trading Recommendations
According to previous analysis, we recommend selling in case of closing 4H below the Support level 124.45 with TP1 123.80 and TP2 123.00; SL closing 4 hours above the Support level will be appropriate.
The material has been provided by Instaforex Company - instaforex.com
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