Euro vs. Great British Pound (2009-10-29)

 @ibtimes on October 29 2009 2:30 AM

Morning report

The secondary four-hour chart shows how the royal pair has succeeded to form a hammer candlestick pattern, accompanied by a positive Stochastic overlapping which may support the technical idea that the 4th corrective wave has been already placed above 50% Fibonacci level. Thus, the pair is to incline on the intraday basis to continue building the impulsive upside fifth wave. A break of 0.9070 will confirm the aforesaid candlestick pattern and will confirm the potential count of Elliott waves.

The trading range is among the key support at 0.8790 and key resistance now at 0.9205.

The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.

Support0.89600.89300.89000.88650.8835Resistance0.90000.90300.90700.91150.9175RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.9000 targeting 0.9110 and stop loss below 0.8920 might be appropriate.

Join the Discussion