Euro vs. Great British Pound (2009-12-16)

The royal pair is presently forming a duplicated bullish harmonic pattern. This pattern consists of [Gartley] pattern, where [B] represented 50% Fibonacci of XA leg, while areas of 0.8925 represent 161.8% -projection -of BC leg. Thus; the areas between 0.8905 and 0.8925 are the ideal potential reversal zones. Consequently, we believe that, the intraday outlook is to the upside, particularly if it succeeded in breaching 0.8960 aggressively.

The trading range is among the key support at 0.8760 and key resistance now at 0.9145.

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.

Support0.89250.89050.88650.88200.8800Resistance0.89600.90000.90300.90700.9115RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8940 targeting 0.9030 and stop loss below 0.8865 might be appropriate.