FX.co ★ GBP/JPY: Bullish bias (Aug 06,2013)

Overview:
GBP/JPY is trading with bullish bias. The rate is undermined by weak USD/JPY undertone; Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers. Daily chart is negative-biased as MACD is in bearish mode, stochastics is turning bearish.

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 149.9, breach of this target will move the pair downward further and one may expect the second target at 149.3. The pivot point stands at 150.3.

Resistance levels:
R1 - 151.6
R2 - 152.1
R3 - 152.75

Support levels:
S1 - 149.9
S2 - 149.3
S3 - 148.5