Euro vs. Great British Pound (2010-07-19)

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The pair is gradually approaching the target levels from our previous weekly report -click here-. The pair breached the main resistance for the downside move and formed a bullish technical pattern close to a Head & Shoulders, and accordingly we expect further bullishness over this week. The bullish move will gain further strength with the breach of the 38.2% correction shown above. The pair might retest the neckline for the pattern and might extend further towards 23.6% correction at 0.8315, yet in general the bullish move remains valid as far as trading is steady above 0.8235 with daily closing.

The trading range for today is among the key support at 0.8180 and key resistance now at 0.8570.

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

Previous Report

Support0.84000.83700.83150.82950.8235Resistance0.84750.85000.85700.86050.8685RecommendationBased on the charts and explanations above, our opinion is buying the pair around 0.8370 targeting 0.8605 and stop loss below 0.8395 might be appropriate this week