Monthly Resistance Holds in GBPJPY
By Jay Norris
Technical resistance kept the Dragon at bay again on Friday as GBPJPY stayed below Monthly resistance levels, opening the door to a retest of last Tuesday’s correction low at approx 141.60. The short-term trend on the Weekly Chart remains higher. See Figure 1
Figure 1
The Daily chart in Figure 2 below shows weekly support at 140.00, marked in white.
Figure 2
Something that sticks out for me from a non-technical perspective is George Soros’ comments a bit back about the Bank of England’s need to DEVALUE the POUND . That makes sense to me as a reasonable strategy for the Brits. The short-term trend onthe Monthly GBPUSD chart remains bearish — see Figure 3 below.
Figure 3
It’s important to remember that everytime you look at a chart and it’s a new session, or new day, or week, or month that market is a slightly different animal.
Jay Norris is the author of Mastering the Currency Market, McGraw-Hill, 2009, and a Market Strategist with BrewerFX in Chicago. To attend an interactive tutorial given by Jay this coming Tuesday, or Thursday register at: LIVE TRADING TUTORIAL The 45-minute classes are held at 1 PM and 3 PM CDT — 6 hours behind GMT.
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