British Pound Cross Pick 05.26.10
Following the drop to 126.77 earlier this month, the GBP/JPY has bounced back this week and there appears to be a short-term correction in the pair as the daily RSI rebounds from oversold territory. As a result, we may see the pound-yen look to test former support, which appears to have now turned into resistance, before the pair continues to work its way back towards the downside. As a result, I will look to short the GBP/JPY at 131.78, the 10-Day SMA, and will target the 5/24 low at 129.12, with the stop at 132.49, the 3/2 low.
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