Euro vs. Great British Pound (2010-05-27)

The is moving inside the recently established trading range between the sensitive support areas 0.8400 and the proposed neckline of the classical pattern-check the previous report-. Now, the four-hour chart shows how a positive divergence was formed on OsMA indicator and thus; possible upside recovery might occur over intraday basis. Areas of 0.8400-0.8380 should hold, otherwise the short term outlook will be changed.

The trading range for today is among the key support at 0.8380 and key resistance now at 0.8535.

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

Support0.84550.84200.84000.84800.8460Resistance0.85000.85500.85800.86050.8635RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 0.8530 targeting 0.8670 and stop loss below 0.8420 might be appropriate.