Morning Report


The expected re-testing action for the broken neckline of the classical (head& shoulders bottom) pattern has occurred, seen on the provided four-hour chart. Currently, we believe that the royal pair is on its way to achieve the classical bullish scenario, targeting 0.8935 areas. Thus, potential upside movements might be seen over intraday basis, supported by the bullish harmonic formation appearing on Stochastic.

The trading range is among the key support at 0.8610 and key resistance now at 0.9005.

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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RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8770 targeting 0.8880 and stop loss below 0.8685 might be appropriate.