Weekly Report (20-24 June 2011)

eurgbp20

Actually, the pair's inability to touch 0.8670 level which is the bottom of point X for the (0-5) bullish pattern suggests that the pattern didn't fail yet and we will rely on it specially that we didn't see a four hour closing below 61.8% retracement level of the BC leg at 0.8750. The pair is trading around the 38.2% of the same leg. Where stability above this level will result in more upside movement, therefore, we expect upside movement for this week, counting on the suggested harmonic structure, despite the pattern is not ideal, it's valid.

Trading range for the week is among the major support at 0.8605 and the major resistance at 0.9070.

The short term trend is to the downside as long as 0.9865 holds, targeting 0.7780.

Previous Report

Support0.88000.87900.87500.87300.8715
Resistance0.88400.88750.89150.89650.9000
RecommendationBased on the charts and explanations above our opinion is buying the pair around 0.8790 targeting 0.8915 and stop loss below 0.8695 may be appropriate for the week.