Weekly Report (08-12 August 2011)

eurgbp08_08_2011

The pair started the week near the retest level of the breached support at 0.8750 as shown in image, however last week closing was below the level, in addition to stability below the support of the rising wedge formation(colored in red) hinting a downside move this week targeting mainly 0.8550. Stability below 0.8790-0.8750 support is required.

Trading range for the week is among the major support at 0.8500 and the major resistance at 0.8880.

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

Previous Report

Support0.86650.86150.85800.85500.8500
Resistance0.87050.87500.87900.88400.8890
RecommendationBased on the charts and explanations above we recommend selling the pair around 0.8750 targeting 0.8550 and stop loss above 0.8840 may be appropriate.