FX.co ★ Daily analysis of GBP/JPY for February 04, 2013

Overview

As it was expected yesterday, the pair would reverse its downward move taking an upward move due to the fact thar the Support area consists of the lower boundary of the bearish channel with the strong Support level of 163.80. Today and as shown in the H4 chart, the pair bounced from the Support area breaking the Resistance level of 164.50. Currently, it is approaching the Resistance level of 166.00 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 of 166.00 before making the decision to have a bullish signals with the first target few pips below the next Resistance level of 167.00. But closing below the Resistance level 166.00 would cancels the bullish move scenario.

Resistance and Support levels: R3 (167.75) R2(167.00) R1(166.00), S1 (164.50) S2 (163.80) S3(163.30)