Euro vs. Great British Pound (2010-05-14)

The royal pair couldn't maintain levels below 0.8480-0.8490 zones yesterday. Thus; our suggested bearishness wasn't activated. On the contrary, it succeeded to build the second bottom of our new suggested double bottom formation as seen on the daily chart. Consequently, possible upside actions could be seen over intraday basis, supported by the positive sign appearing on Stochastic. The neckline of the pattern is targeted at 0.8700-0.8720 areas.

The trading range for today is among the key support at 0.8480 and key resistance now at 0.8720.

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

Support0.85700.85500.85000.84800.8420Resistance0.86050.86350.86600.87000.8720RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8570 targeting 0.8700 and stop loss below 0.8580 might be appropriate.