Euro vs. Great British Pound (2010-07-29)

Despite the bigger picture of the weekly interval could be bullish, depending on the bullish harmonic butterfly pattern-check the weekly report-, but a potential bearish classical pattern started to appear on the four-hour charts. Therefore, the intraday basiscould be bearish but not before breaching the neckline areas successfully, which the pair is presently facing. A four-hour closing below 0.8315 could activate this suggested breakout. On the other hand, a break of 0.8380-0.8420, accompanied by a daily closing above it will make the bullishness come into focus.

The trading range for today is among the key support at 0.8180 and key resistance now at 0.8470.

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

Support0.83150.82950.82550.82050.8180Resistance0.83800.84000.84200.84700.8500RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 0.8315 targeting 0.8210 and stop loss above 0.8400 might be appropriate.