Morning Report

eurgbp27_07_2011.gif

The pair setteled below the neckline of the suggested bullish technical pattern at 0.8845, where there is a minor uptrend pushing price upward as shown in image. In addition to that, the 50 EMA is forming good support for the pair and the positivity on Stochastic as well. Therefore, we expect an intraday upside move today and requires a clear breach of 0.8845 and stability above 0.8820-0.8800. It's important to mention that the current upside move may be a minor correction and temprary within the main downside trend and this is clear by observing the correction levels shown above.

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

Support0.88200.88000.87500.87000.8665
Resistance0.88450.88900.89400.89750.9030
RecommendationBased on the charts and explanations above we recommend buying the pair with hourly closing above 0.8845 targeting 0.9000 and stop loss below 0.8750 may be appropriate.