Morning Report

eurgbp29_07_2011.gif

The pair settled above the support of the rising wedge formation shown in image, while it's still having difficulties to confirm the breach of the pivotal supprt at 0.8750 which is the neckline for a potential bearish technical pattern. The 50 EMA besides negativity on stochastic support the awaited breach of the neckline. Therefore, we expect an intraday downside move for today, which requires two conditions; a clear breach of 0.8750 and stability below 0.8835

Trading range for the day among the major support at 0.8580 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

Support0.87500.87000.86650.86150.8580
Resistance0.88000.88350.88900.89400.8975
RecommendationBased on the charts and explanations above we recommend selling the pair with hourly closing below 0.8750 targeting 0.8600 and stop loss above 0.8835 may be appropriate.