Euro vs. Great British Pound (2010-07-16)

In line with our previous report, the royal pair inclined very slightly to relieve momentum indicator- we recommend reviewing the pair's chart in the previous report to understand the idea-. A very tight range has dominated movements for the third consecutive day and thus we still believe that the bearish classical pattern could be activated once we get a four-hour closing below the neckline areas. Consequently, we keep our yesterday's bearish predictions intact. Stochastic supports our overview.

The trading range for today is among the key support at 0.8205 and key resistance now at 0.8500.

The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of0.8965remain intact.

Weekly Report Previous Report

Support0.83550.83350.82950.82550.8205Resistance0.83800.84000.84200.84600.8500RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 0.8335 targeting 0.8240 and stop loss above 0.8410 might be appropriate.