Euro vs. Great British Pound (2010-04-26)

After reaching the first suggested technical objective areas of the previous explained harmonic formation, the royal pair started to correct this aggressive upside movement as seen on the provided four-hour chart. We see chances for re-testing the broken support levels of 0.8630 before resuming the upside rally towards the next target, seen on the image. The secondary image of Stochastic for daily basis confirms our scenario.

The trading range for this week is among the key support at 0.8480 and key resistance now at 0.8860.

The general trend over short term basis is to the upside, targeting 0.9720 as far as areas of 0.8400 remain intact.

Previous Report

Support0.86300.86050.85800.85300.8480Resistance0.87000.87200.87600.88300.8860RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8630 targeting 0.8760 and stop loss below 0.8530 might be appropriate.