Weekly Report 28/03 -01/ 04/ 2011
The weekly chart of the royal pair offers a great classical probability via drawing a huge symmetrical triangle pattern with a resistance line starting from the historical high of 0.9805 zones. Since the technical target of this pattern is the widest distance of the pattern that can be applied to the breakout level, then we suggest a new historical high over short and medium term basis at 1.0400 levels, but let's take it step by step. We can see resistance zones around 0.8960, followed by a stronger one at 0.9155 and they will be our detected technical objectives for the time being. To conclude, our outlook is bullish, supported by the positive sign appearing on MACD indicatorand for more details about this classical outlook, we recommend reviewing EUR/GBP classical report.
The trading range for this week is among the key support at 0.8555 and key resistance now at 0.9000.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
Support0.87300.87000.86750.86200.8585Resistance0.88150.88600.89100.89650.9000RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.8750 targeting 0.8960 and stop loss below 0.8605 might be appropriate.