Morning report


Influenced by the previous explained positive divergence in addition to the bullish harmonic AB=CD pattern above 50% Fibonacci level, the royal pair has formed a bullish candlestick formation, supporting the technical idea of starting the bigger fifth wave of the daily sequence. Stochastic is building CD leg of a harmonic structure -seconday image-, supporting our highly predicted positive overview. A daily closing above 0.9070 will confirm our Elliott count.

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.

RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.9020 targeting 0.9115 and stop loss below 0.8940 might be appropriate.