Euro vs. Great British Pound (2011-02-07)

By @ibtimes on

Weekly Report

eurgbp07

Breaching the harmonic support from the points A to C signals the movement towards the extended harmonic targets starting from 76.4% then 88.6% and breaching the pattern will take the pair towards the point C. Therefore, trading below the 61.8% correction at 0.8460 signals targets at 0.8410 then 0.8365 and the latter extend the move towards 0.8325. The oversold signs on RSI and the attempts of positive reversal on Stochastic might pressure the pair to correct to the upside though trading below 0.8540 will keep the bearishness valid.

The trading range for this week is among the key support at 0.8250 and key resistance now at 0.8635.

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

Support0.84100.83650.83250.82950.8250Resistance0.84600.84900.85100.85400.8590RecommendationBased on the charts and explanations above, our opinion is selling the pair around 0.8460 targeting 0.8295 and stop loss above 0.8540 might be appropriate

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