Euro vs. Great British Pound (2009-12-07)

The royal pair has reached our first technical target at 0.8985 zones, where it has found a solid support that pushed it to re-test the broken support line of 0.9045-61.8% Fibonacci level-, seen on four-hour chart. Currently, we believe that, the CD leg for the suggested harmonic formation is to continue towards its projected technical target at around 0.8835 zones. Therefore, we keep our suggested bearish scenario over intraday basis as far as areas of 0.9115 remain intact.

The trading range is among the key support at 0.8930 and key resistance now at 0.9260.

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.

Support0.90000.89600.89250.89050.8865Resistance0.90700.91150.9175092050.9235RecommendationBased on the charts and explanations above our opinion is, selling the pair from 0.9030 targeting 0.8925 and stop loss above 0.9115 might be appropriate.