Morning Report

eurgbp12_10_2011

The pair continued the upside move to breach the resistance of the correctional channel, and this is considered a positive sign that the pair settled for the latest downside correction, and settling above the 50 EMA is supporting this idea. Accordingly, we expect an intraday upside move targeting initially 0.8885, taking into consideration that negativity on stochastic may pressure intraday trading to resume trading among the downside correction.

The trading range for today may be among the 0.8625 support and 0.8885 resistance.

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

Previous Report Weekly Report

Support0.87250.86700.86150.85900.8530
Resistance0.88050.88450.88850.89250.9000
RecommendationBased on the charts and explanations above we recommend buying the pair around 0.8725 targeting 0.8885 and stop loss below 0.8615 may be appropriate for today.