Saturday, August 29, 2009

Daily Chart

Above is the screenshot of GBP/JPY daily chart. The current uptrend from 118.80 may come to and end after reaching 163.06 on August 7. Drawing a fibonacci retracement from those bottom and top, we can see that the pair had closed below 23.6% level this week. We can also see that the broken support at 153.45 was tested today. Now it seems that we should anticipate further bearish for next week.

The next fibonacci level is th 38.2% retracement level at 146.16, near July 8 low at 146.74. However, the pair must break this week's low first at 151.05 before attempt to test 146.16/146.74 support area. I already have a position, entered at 151.73. It's floating in red now. And although I think that the pair could reach 38.2% level, I wouldn't wait until it reach that price to close my position. I'd prefer to enter another position later if there is any opportunity.

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