Morning Report

eurgbp05_01_2012

The negativity has dominated the movements of the royal pair yesterday where it started to stabilize around the critical support level of 0.8270 without achieving a daily closing below it. Over daily studied, we can notice clear oversold signs forcing us to wait for a breakout below or above one of sideways edges shaded on the chart. Those critical edges reside at 0.8270 and 0.8395 and the price behaviors around them will define the upcoming big move.

The trading range for the day is expected among the key support at 0.8170 and the key resistance at 0.8480.

The short term trend is to the upside as far as 0.8165 remains intact with targets at 1.0370.

Previous Report

Weekly Report

Support0.82700.82500.82000.81700.8100
Resistance0.83000.83950.84400.84800.8550
RecommendationBased on the charts and explanations above we recommend buying the pair with four-hour closing above 0.8395 targeting 0.8550 and 0.8635 ,stop loss with four-hour closing below 0.8395 or selling the pair with a four-hour closing below 0.8275 targeting 0.8170 and 0.8100, stop loss with a four-hour closing above 0.8395 may be appropriate.