Weekly Report 02/01 -06/01/ 2012

eurgbp02_01_2012

The royal pair istrapped within the shaded range seen on the graph between the support of 0.8270 and the resistance around 0.8400 areas. As a consequence, we need to witness a breakoutabove or below this range to confirm the next move as a break above 0.8400 will send the pair higher towards 0.8550 as a first target; whilst a breakout below 0.8270 will take us towards 0.8170 and 0.8100.

The trading range for this week is among the key support at 0.8170 and the 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.

Previous Report

Support0.82700.82500.82000.81700.8100
Resistance0.84000.84400.84800.85500.8605
RecommendationBased on the charts and explanations above we recommend buying the pair with four-hour closing above 0.8400 targeting 0.8550 and 0.8635 ,stop loss with four-hour closing below 0.8400 or selling the pair with a four-hour closing below 0.8270 targeting 0.8170 and 0.8100, stop loss with a four-hour closing above 0.8400 may be appropriate.