Euro vs. Great British Pound (2010-02-23)

The royal pair hadn't been able to show big moves as it is still struggling to stabilize above the detected neckline of our captured inverted head and shoulders pattern as seen on our provided daily chart. Actually, a breakout above 0.8790 is needed to confirm the anticipated resumption for this classical formation. Thereby, potential upside actions could be seen over intraday basis but we should watch the price behavior around the aforesaid neckline.

The trading range is among the key support at 0.8610 and key resistance now at 0.8935.

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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Support0.87600.87200.87000.86850.8655Resistance0.87900.88200.88650.89050.8935RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 0.8790 targeting 0.8905 and stop loss below 0.8700 might be appropriate.