Euro vs. Great British Pound (2011-03-04)

By @ibtimes on

Morning Report

The pair neglected the alternation principle of the harmonic studies, which we explained in the previous reports and could reach neither 61.8% nor 76.4% of BC leg. The amazing technical factor was that it respected the scientific level of the 5-0 pattern, reversing from 50% Fibonacci of the aforesaid leg at 0.8455. We discussed before that the allover structure is bullish harmonic 5-0 pattern and thereby, we will put 161.8% Fibonacci projection of CD leg at 0.8670 under our technical microscope since the technical objective of this patternis always seenat 161.8% Fibonacci projection of CD leg. Some kind of correction is needed to relieve RSI before resuming the successful upside journey of the bullish harmonic pattern.

The trading range for today is among the key support at 0.8455 and key resistance now at 0.8700.

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

Weekly Report

Support0.85450.85200.85000.84800.8455Resistance0.85900.86050.86300.86700.8700RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.8545 targeting 0.8670 and stop loss below 0.8455 might be appropriate.

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