The pair is consolidating around 161.8% Fibonacci projection of CD leg of our efficient bullish harmonic 5-0 pattern, which pushed the royal pair to the upside during the previous period. The most important thing that is also worth mentioning that SMA 50 is carrying the bullishness from below and that is why we believe that 261.8% Fibonacci of CD leg at 0.8815 will be touched sooner or later. In our case of 5-0 pattern, we don't look at 261.8% as an extreme target since this pattern is always targeting extended Fibonacci levels.
The trading range for today is among the key support at 0.8585 and key resistance now at 0.8815.
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 0.8675 targeting 0.8815 and stop loss below 0.8560 might be appropriate.|