Weekly Report(27-30 Dec 2011)
The royal pair continues to be stuck among the sensitive levels we mentioned in our previous reports and shaded in yellow, those levels are the support of the descending channel at 0.8295 and the resistance at 0.8385, while stochastic is up-tending over daily basis, and the 50-EMA is pressuring trading to the downside. In general, we still need a breach of 0.8295 to target 0.8200 and 0.8100 or 0.8385 which will lead to testing 0.8550.
The trading range for this week is expected among the key support at 0.8100 and th.e key resistance at 0.8550.
The short term trend is to the upside as far as 0.8165 remains intact with targets at 1.0370.
Support0.82950.82500.82000.81700.8100Resistance0.83850.84400.84800.85500.8605RecommendationBased on the charts and explanations above we recommend selling the pair with four-hour closing below 0.8295 targeting 0.8200 and 0.8100 ,stop loss with four-hour closing above 0.8385 may be appropriate