Euro vs. Great British Pound (2010-01-15)

on January 15 2010 3:19 AM

Morning Report

eurgbp

Breaching 0.8840-0.8850 formed a bearish classic pattern seen on the chart above. This pattern might drive the pair sharply to the downside within today's intraday trading, towards the nearest possible target for this pattern around 0.8710 which is the 161.8% extension. The downside potential remains valid as far as trading is intact below 0.8905. ADX is providing rising downside strength.

The trading range for today is among the key support at 0.8710 and key resistance now at 0.9030.

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.

Support0.88200.87900.87600.87450.8705Resistance0.88500.89050.89650.90000.9030RecommendationBased on the charts and explanations above our opinion is, selling the pair from 0.8840 targeting 0.8710 and stop loss above 0.8910 might be appropriate.

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