GBP/JPY Tanks, Opportunity Present...

Last updated 11/30/2009 12:48 PM EST (GMT -5) 1 Comments

FX360 Technical Analyst Staff

Technical Analyst, GFT

The GBP/JPY tumbled in early morning trading to session lows near the 141.0 handle where we have multiple levels of Fibonacci support as well as two separate, yet intertwined, geometric patterns based on the following convergence...

Pattern #1 - Bullish Gartley (in purple on chart below)

Pattern #2 - Bullish Butterfly (in pink on chart below)

As a result, prices have started to rise with room up to converging Fib resisatance near 142.15, 142.45, or 1.42.80. With the bigger picture pointing to downward momentum in terms of overall trend, we're not overly anxious to jump in on this corrective rally especially considering prices have already started to rise which really cuts into the risk/reward. The point here is that it's reasonable to anticipate a quick corrective rally which may present as possible selling opportunity should prices rise to these resistance levels.

If a selling opportunity does present itself near the 142-143 resistance levels, there's also some converging support (as well as another bullish gartley pattern) down near 140.25-30 which would make for a good initial profit target.

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Comments (1)

basheero

December 01, 2009 at 04:22 AM ET

so the price goes down i think

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