Morning Report

eurgbp09_08_2011

The pair maintains stability below the pivotal breached support at 0.8750, where it find some difficulty continuing the downside journey affected by positivity on stochastic which may result in fluctuation around the breached support. In general, and due to the aforementioned breach of the support and the rising wedge formation in addition to the negative pressure from the 50 EMA we will continue to expect intraday bearishness targeting mainly 0.8550. Stability below 0.8750 is important to not delay the move.

Trading range for the day is among the major support at 0.8580 and the major resistance at 0.8795.

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

Previous Report

Weekly Report

Support0.86650.86150.85800.85500.8500
Resistance0.87500.87950.88400.88900.8940
RecommendationBased on the charts and explanations above we recommend selling the pair around 0.8750 targeting 0.8615 and stop loss above 0.8795 may be appropriate.