Euro vs. Great British Pound (2010-01-25)

Inside the bearish channel, the royal pair is developing an upside correctional movement as seen on the daily chart. It is clear that the pair is currently forming the bigger forth wave of our suggested Elliott cyclesince topping at 0.9807. Thus, we think that the correction might extend further towards 0.8820 zones before moving to the downside once more, retargeting 0.8400 zones over short term basis. To recap, the bearishness is still in favor as far as 0.9030 areas remain intact.

The trading range for this week is among the key support at 0.8400 and key resistance now at 0.9160.

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.

Previous Report

Support0.87200.86800.86550.85800.8530Resistance0.88200.88650.89050.89600.9030RecommendationBased on the charts and explanations above our opinion is, selling the pair from 0.8820 targeting 0.8580 and stop loss above 0.9030 might be appropriate