Euro vs. Great British Pound (2011-04-19)

By @ibtimes on

Morning Report

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The royal pair extended its expected slant downside move to relieve momentum indicator towards the initial support of 0.8730 as seen on the provided four hour graph. Now, we can see a hidden positive divergence, where RSI 14 is presently drawing a potential double bottom around the value of 30.00-oversold levels-. Thereby, we still see chances for achieving a new bullish wave towards the extended technical objective of the bullish harmonic 5-0 pattern, noting that 161.8% Fibonacci projection of CD leg still provides the pair with the support it needs.

The trading range for today is among the key support at 0.8630 and key resistance now at 0.8915.

The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of0.8965remain intact.

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EUR/GBP Classical

Support0.87350.87150.87000.86850.8650Resistance0.87800.88150.88500.89150.8965RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.8735 targeting 0.8915 and stop loss below 0.8630 might be appropriate.

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