FX.co ★ GBP/JPY technical levels and trading recommendations for August 21, 2013

Overview

As it was expected yesterday, the pair would reverse its downward move taking an upward move due to the Support area consists of the lower boundary of the bullish channel with the strong Support level 152.00. Today and as shown from the H4 chart, the pair bounced from the Support area breaking the Resistance level 152.50 and currently is approaching the Resistance level 152.90 trying to break it through to continue its bullish move which means more buy-signals keeping its movement inside the bullish channel. So we should wait till the price closes above the Resistance level 152.90 before making the decision to have a bullish signals with the first target few pips below the next Resistance level 153.75. But closing below the Resistance level 152.90 cancels the bullish move scenario.

Resistance and Support levels: R3 (153.75) R2(152.90) R1(152.50), S1 (152.00) S2 (151.20) S3(150.60)