Morning Report

eurgbp16_12_2011

The pair resumes the downside bias and gradually moving towards the full correction for the upside move from 0.8354 to 0.9083 and the support for the descending channel shown above at 0.8315. The positivity on momentum indicators keeps the volatility ongoing yet we expect further intraday bearishness today; we should observe the pair when reaching the targets between 0.8355 and 0.8315 as an upside reversal is possible and we will define the targets later.

The trading range for today is expected among the key support at 0.8250 and the key resistance at 0.8480.

The short term trend is to the upside as far as 0.8480 remains intact with targets at 1.0370.

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Weekly Report

Support0.83850.83550.83250.82800.8250
Resistance0.84150.84800.85250.86050.8635
RecommendationBased on the charts and explanations above our opinion is selling the pair around 0.8425 targeting 0.8315 and stop loss with four-hour closing above 0.8415 might be appropriate