Euro vs. Great British Pound (2010-05-05)

We have a very complicated case here as the royal pair is presently trading around cluster supportzones, consisting of 38.2% Fibonacci level of the rally from 0.6520 to the all time high at 0.9806 and 61.8% for the inclines from 0.7693 to the aforesaid high. My dear reader, we intended to present the weekly charts to show how sensitive are the current levels of trading. All bearish signs papering on the chart could be neglected if the pair bounced from here and on the other hand a break of 0.8550-0.8500 could send the pair down towards 0.8190 zones over short term. To recap, we should watch out the price behavior very carefully to be able to define the upcoming move.

The trading range for today is among the key support at 0.8420 and key resistance now at 0.8700.

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

Weekly Report Previous Report

Support0.85500.85000.84800.84450.8420Resistance0.85800.86050.86300.86600.8700RecommendationBased on the charts and explanations above our opinion is, waiting until a clear sign appears in order to pinpoint the coming big move.