Target Done this is the convenient description for what happened during the previous three weeks as the royal pair succeeded in reaching the detected short term target. This target was based on the bullish harmonic 5-0 pattern, the pattern which we depended on it during the previous period. We discussed how this pattern always sends the price towards the extended Fibonacci levels of its CD leg and we have got the second extended levels at 0.8815 where 261.8% projection exists. Now, potential mild downside recovery due to facing the upper line of the upside channel and the overbought sign of RSI might occur before moving once more to the next level at 361.8% at 0.8950-0.8965 zones. As far as the bullish channel remains controlling the movements, we will look at the upside. For another point of view, we recommend reviewing the EUR/GBP classical report.
The trading range for today is among the key support at 0.8675 and key resistance now at 0.8965.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 0.8750 targeting 0.8910 and stop loss below 0.8630 might be appropriate.|