Euro vs. Great British Pound (2010-01-06)

It looks like the pair intends to form CD leg for a harmonic formation as seen on the provided daily chart. Adding this idea to our previous explained potential Elliott count is to confirm that, the bullishness might continue over intraday and short term basis. Stochastic still shows positive crossover, supporting our overview.

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.

Weekly Report

Support
0.8935
0.8905
0.8880
0.8860
0.8820

Resistance
0.8980
0.9000
0.9030
0.9070
0.9115

Recommendation
Based on the charts and explanations above our opinion is, buying the pair from 0.8950 targeting 0.9030 and stop loss below 0.8880 might be appropriate.

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