FX.co ★ GBP/JPY candlestick analysis for June 27, 2011

In a 4-hour graph the GBP/JPY currency pair is still trading down after a successful break of the support level 129.00. Nevertheless, the viewpoint at the pair is still bearish as the downtrend remains.
Earlier in a 4-hour graph the GBP/JPY formed a Shooting Star candlestick, indicating downside movement which was later confirmed.
This candlestick combination was formed after the pair failed to break the resistance level at 135.17, which means that the bulls were not able to solidify here and the bears began to increase their influence.
Break of the Fibonacci correction level 23.6 and the upside channel proves this point of view. Successful testing of the support level 131.23 targeted the GBP/JPY to 129.00. Its break allowed the pair to reach 128.00.
However, it should be mentioned that if the pair fixates above the resistance level 130.67, short positions should be closed as it would lead to growth to 132.30.