Morning Report

eurgbp26_07_2011

The pair successfully breached the neckline we mentioned yesterday at 0.8845, therefore, positive effect by the bullish technical pattern may push the pair to achieve upside intraday move for today supported by the 50 EMA. Negativity on stochastic may lead to some fluctuation and a re-test of the breached neckline before heading toward the awaited targets which reside mainly at 0.9000. Stability above 0.8845-0.8805 is required for our expectations to be valid.

Trading range for the day among the major support at 0.8700 and the major resistance at 0.9000.

The short term trend is to the upside targeting 1.0370, as long as 0.8165 remain intact.

Previous Report

Weekly Report

Support0.88450.88050.87500.87000.8665
Resistance0.88900.89400.89750.90300.9080
RecommendationBased on the charts and explanations above we recommend buying the pair around 0.8845 targeting 0.9000 and stop loss below 0.8750 may be appropriate.