Midday Report


The pair is trapped within a very narrow range and this is a normal price behavior after reaching an extended technical target for a rare pattern like our 5-0 pattern as we discussed this morning. Anyway, we still believe that the pair will move slightly downwards to relieve momentum indicator after touching the resistance line of our caught ascending channel before penetrating 261.8% of CD leg of the pattern at 0.8815 on its way towards 0.8950 levels, where 361.8% projection exists.

The trading range for today is among the key support at 0.8675 and key resistance now at 0.8965.

The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.

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EUR/GBP Classical

RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.8750 targeting 0.8910 and stop loss below 0.8630 might be appropriate.