Euro vs. Great British Pound (2010-01-20)

on January 20 2010 12:54 AM

Morning Report

The royal pair succeeded in reaching our yesterday's Technical objective at 0.8700 zones, which represent classical cluster support as seen on the provided daily chart. Now, oversold sign accompanied by bullish harmonica formation appearing on the indicator is to cause a bullish correctional wave, targeting 0.8760 and might extend towards 0.8820 before resuming the downside rally. Consequently, a corrective wave is awaited over intraday basis.

The trading range is among the key support at 0.8530 and key resistance now at 0.8905.

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.

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Eye on the EUR/GBP pair-click here-.

Support0.86850.86550.86100.85800.8530Resistance0.87200.87600.87950.88200.8865RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8690 targeting 0.8795 and stop loss below 0.8610 might be appropriate.

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