The royal pair succeeded in reaching the full correctional level of XA leg of our proposed bearish harmonic crab pattern as we discussed in our previous report-we recommend reviewing it for more details about this harmonic formation-. We can see how RSI is showing a significant overbought signs and thus, some kind of correction is needed to relieve the momentum indicator before resuming the CD leg of the pattern. Fibonacci projection level of 127.2% at 0.8740 could play the role of PRZ for this crab pattern and probably we will visit 161.8% levels.
The trading range for today is among the key support at 0.8520 and key resistance now at 0.8810.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of0.8965remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 0.8625 targeting 0.8740 and stop loss below 0.8550 might be appropriate.|