The contradiction between our yesterday's discussed breakout below the support line of the bullish channel and the oversold sign started to appear on RSI might cause technical hesitation over intraday basis. There is a technical factor that might assist the pair to move higher once more, it is the breakout above 0.8780 zones-value of SMA 50- since it will be able to resume the extended technical targets of the bullish harmonic 5-0 pattern. We should know that the bigger picture over weekly basis is still definitely bullish as we discussed in EUR/GBP classical.
The trading range for today is among the key support at 0.8630 and key resistance now at 0.8910.
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 with a breakout above 0.8780 targeting 0.8930 and stop loss below 0.8650 might be appropriate.|