FX.co ★ GBP/JPY technical levels and trading recommendations for May 01, 2013

Overview

As it was expected yesterday, the price is still standing below the resistance level 151.70 and the downward trend line, that's why the price kept its stabilization below this support area. In accordance with this stabilization, this means canceling our first bullish scenario. However, the bullish move is still open in case of closing 4H above this Support area, which gives a strength opportunity for bullish signals and open the way towards the 2nd Resistance area (consists of the support level 153.20 and the lower boundary of the bullish channel).

The other suggested scenario would be that the price keeps its failure to break this downward trend line and then manages to break the support level 150.50 which means the way towards the support level 149.50 then 148.50, but proceeding from the today's H4 chart closing above the resistance area cancels the second scenario.

Resistance and support levels R3 (154.00) R2 (153.20) R1 (151.70) S1 (150.50) S2 (149.50) S3 (148.50)