Morning Report

eurgbp08

The pair is retesting the SMA 20 areas in areas around the previously breached support, which is now resistance and below the 61.8% correction of CD at 0.8460. Stochastic entered overbought areas and accordingly we expect the pair to return to test 76.4% correction areas and stability below those areas at 0.8410 will extend the decline. The pair is expected to move to the downside once again and remains valid as far as stability is below the aforementioned 61.8% correction.

The trading range for today is among the key support at 0.8290 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.

Support0.84100.83700.83300.82900.8245
Resistance0.84400.84600.85000.85400.8590
RecommendationBased on the charts and explanations above, our opinion is selling the pair around 0.8440 targeting 0.8330 and stop with four-hour closing above 0.8500 might be appropriate