Morning Report

eurgbp31_08_2011

The pair is moving between SMA 50 and the initial resistance which we are waiting for a breakout above it at 0.8885. Stochastic is showing off negative sign that prevent the pair from achieving the aforesaid breakout. In general, the bullish effect of the falling wedge, discussed earlier is still valid; particularly, after achieving the retest action. In result, we hold onto our bullish anticipations over intraday basis if 0.8885 is breached and stability seen above 0.8795.

Trading range for the day is among the major support at 0.8705 and the major resistance at 0.9150.

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

Previous Report

Weekly Report

Support0.87950.87400.87050.86500.8615
Resistance0.88850.89400.90000.90300.9080
RecommendationBased on the charts and explanations above we recommend buying the pair with a four-hour closing above 0.8885 targeting 0.9150 and stop loss with four hour closing below 0.8795 might be appropriate.