Euro vs. Great British Pound (2010-05-13)

The royal pair is still retesting the pivotal resistance areas of 0.8500-0.8550from below, where we believe that it is gathering the momentum it needs to be able to breach 0.8400 zones as we discussed earlier. Actually, RSI 14 is gradually entering oversold zones and thus; fluctuated movements might occur but AROON shows how the bearishness is strong enough and it could help it to achieve additional negative movements over intraday basis. EMA 10-80 are presently acting as a ceiling, while a break of 0.8490-0.8480 is needed to confirm our overview.

The trading range for today is among the key support at 0.8400 and key resistance now at 0.8635.

The general trend over short term basis is to the upside, targeting 0.9720 as far as areas of 0.8400-0.8380 remain intact.

Weekly Report Previous Report

Support0.85000.84800.84500.84200.8400Resistance0.85500.85800.86050.86350.8700RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 0.8490 targeting 0.8400 and stop loss above 0.8580 might be appropriate.