This weeks 23rd April 2012

Pound has reached a major resistance line at 1.6127 on Fridays closing and may be headed lower this coming week.There is some bearish divergence on the daily charts with the MACD which in my opinion suggests some bearish  move to the 6000 levels.

Daily chart with bearish divergence.Keep an eye on this pair this coming week depending on how it will open come Monday morning.There is some news coming this week on the 1st quarter GDP reading s that may be a game change with higher expectations.

There is some bullish divergence on the Aud/Usd pair on the weekly chart which may signal some bullish action this coming week.However,most readings from Australia have not been as encouraging and may be slow to develop.Weeklies are however long term and any news from the FOMC this week may be a game changer.Take note and act accordingly.

 I am also looking at the Yen pairs this week which have been bullish across the board for most of last week.Still bullish for this pair though especially with the Eur/Jpy that has a big bullish bar on the weekly chart that only suggests further bullish action on an upward trend since mid January this year.A move higher could lead to the double top formed at around the 112 area earlier this year.

However,Gbp/Jpy has formed a harmonic pattern that may suggest some bearish price action on the daily chart for the coming week.The pair is almost at overbought on the daily chart.I will be watching for price action for this pair to take advantage should the Yen strengthen.

This are the trade set up I will be watching closely for this coming week.Kindly do your own analysis and feel free to add your thoughts to what I have posted.Have a great week people.