Euro vs. Great British Pound (2011-02-16)

By @ibtimes on

Morning Report

eurgbp16

The bearish harmonic structure, discussed in the weekly report forced us to respect it as it negated our yesterday's suggested bullishness. The royal pair started to move below 76.4% at 0.8410 and around 88.6% Fibonacci and thus, C point might be revisited. Stochastic shows oversold signs and also RSI is close to oversold zones. Therefore, some kind of correction might be seen before resuming the bearishness below 76.4% Fibonacci of CD leg due to the harmonic rules.

The trading range for today is among the key support at 0.8210 and key resistance now at 0.8505.

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

Previous Report

Weekly Report

Support0.83300.82900.82450.82100.8190Resistance0.83900.84100.84600.84800.8505RecommendationBased on the charts and explanations above our opinion is, selling the pair around 0.8390 targeting 0.8245 and stop loss with a four closing above 0.8460 might be appropriate.

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