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Forex: GBP/JPY extends decline below 137.00

Fri, Mar 19 2010, 10:19 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - Pound recovery frm 135.15 low on Tuesday was capped at 139.35 high on Tuesday, and the pair has recovered its bearish momentum after failure to break 138.00 area dropping all the way to reach levels below 137.00.

If the pair confirms below 137.00 (Mar 17 low), next support levels could be at 136.60 (intra-day level) and then the support trendline from Mar 4 lows, around 1.3600/10.

On the upside, above 137.00, next resistance levels lie at 138.00/10 (session high), and above here 138.40/55 (Mar 18 highs) and 139.49 (Mar 17 high).

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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