FX.co ★ GBP/JPY: Upside (Aug 02, 2013)

Overview:
GBP/JPY is consolidating with bullish bias. GBP/JPY is underpinned by positive investor risk appetite; demand from Japan importers. But GDP/JPY gains tempered by Japan exporter sales; positions adjustment before weekend. Daily chart is tilting positive as stochastics turned bullish; negative MACD histogram bars contracting.

Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favorable and buy position is recommended above its pivot, with the first target at 151.6 and the second target at 152.1. You should keep in view short position below the pivot keep of the first target at 149.3, breach of this target will move the pair downward further and one may expect the second target at 148.7. The pivot point stands at 149.9.

Resistance Levels:
R1 - 151.6
R2 - 152.1
R3 - 152.5

Support Levels:
S1 - 149.3
S2 - 148.7
S3 - 148.2