FX.co ★ EUR/CHF candlestick analysis for June 30, 2011

Earlier in a daily graph the GBP/JPY formed a Piercing Line candlestick expressing a bullish signal.
This candlestick combination indicates that the pair was demonstrating downside movement during several months after an unsuccessful attempt to break the resistance 1.3238. However, near 1.1800 it reversed, which means that the bears could not solidify here and further the bulls started to increase their influence.
Break of the resistance level 1.2317 and Fibonacci correction level will mean this point of view is correct.
In this case we should expect growth to the resistance level near 1.2730 where the Fibonacci correction level 61.8 is located as well.
Upside movement is supported by the divergence on the RSI and the MACD.
It is worth mentioning that stop loss should be placed slightly below the support level 1.1800 as its break will cause refreshing new lows.