Weekly Report 09/08 -13/ 08 / 2010

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The royal pair is still moving below the previous broken neckline areas of our captured bearish classical pattern as seen on the provided four-hour chart. Having a deeper look at Stochastic indicator, we can see a bearish harmonic formation, accompanied by a negative crossover. Thereby, we think that the retesting process for the neckline was completed earlier and the pair might show potential downside movements during this week. The technical target of the pattern is seen obviously on the image

The trading range for this week is among the key support at 0.8140 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 of 0.8965 remain intact.

Previous Report

Support0.82950.82550.82250.82050.8140
Resistance0.83350.83550.83800.84000.8420
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 0.8320 targeting 0.8185 and stop loss above 0.8420 might be appropriate.