Weekly Report 18/04 -22/ 04/ 2011

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The royal pair is still gathering the required momentum around the uptrend line that carried the movements from D point as seen on the provided four hour graph. In the interim, RSI 14 becomes very close to oversold areas as it is currently valued at 35.00. Therefore, the short term uptrend continues dominating the pair affected by the efficient bullish harmonic 5-0 pattern. Technical targets reside at 361.8% Fibonacci projection of CD at 0.8950, followed by 423.6% at 0.9030.

The trading range for this week is among the key support at 0.8605 and key resistance now at 0.9070.

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

EUR/GBP Classical

Support0.88000.87800.87300.87000.8685
Resistance0.88500.88750.89150.89650.9000
RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.8800 targeting 0.8950 and stop loss below 0.8685 might be appropriate.