Thursday February 18, 2010 - 20:13:02 GMT
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FXTimes: Daily Technical Update GBP/JPY Stochastic Hints Rally
Daily Technical Update
February 18, 2010
GBP/JPY Stochastic Hints Rally
- 4H: The price action this week has been contained
in a rising channel and looked poised to rally from the 139.0 support
area, which it broke temporarily, but did not confirm. (Refer to Daily Video Technical Update 2.16.2010; last pair).
- The stochastic can provide a helpful hint IF it can stay above 50.
Otherwise, a weaker hint would be a failure to get to oversold zone,
preferably above 30 or 40.
- Price action right before might night EST, showed a 2-bar reversal
signal. The market has declined since, but paused as it reached the
previous congestion area around 141.00.
- The candlestick at the start of the US session shows rejection from
channel support. Also, it is testing a downsloping trendline that it
broke in the previous session.
- Daily: The daily chart below shows the wide range
between 153.0 and 139.0 area. The market can test the channel
resistance at 153.0. BUT, we have to note the declining channel that
may be developing.
- This caps a conservative short-term bullish outlook to the 78.6% retracement or 148.00 area.
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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