Overview
Proceeding from today’s H4 chart, the pair fails to break the Resistance level of 140.00 and is still trading between the Support level of 139.10 and Resistance level of 140.00 and currently is trying to break the Resistance level. Given that the pair manages to break the Resistance level of 140.00 and closes 4H above, we will get a good opportunity to buy again above the Resistance level till it reaches the Resistance level of 140.45 as the target level. Then we should wait for breaking this Resistance level to continue the upward move and open the way towards the Resistance level of 141.10. On the other hand, if the pair fails to break the Resistance level of 140.00 and bounces from it, it may reverse the bullish move taking a downward move, which will enable the Support level of 139.10. Then we should wait for breaking this Support level in order to get new bearish signals. In case the pair is able to break the Support level and closes 4H below, we will get a bearish strength providing new sell signals which will enable the Support level of 138.65 as a target level. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level of 140.00 is unbroken, the downward move is still expected invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support levels
R3 (141.10) R2 (140.45) R1 (140.00) S1 (139.10) S2 (138.65) S3 (137.90)
Trading recommendations: according to the previous analysis, we recommend buying after breaking the Resistance level of 140.00 and closing 4H above with TP 140.40; SL closing 4 hours below the Resistance level will be appropriate.
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Performed by Hossam Soliman Ali, Analytical expert InstaForex Group © 2007-2013 |
GBP/JPY Technical Levels and Trading Recommendations for February 28, 2013
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