Weekly Report(23-27 March)

eurgbp23_01_2012

The pair declined sharply to touch the support of the minor ascending channel which is clearly shown on the above chart; the channel may be a continuation bearish flag pattern. The 50-EMA pressures the pair negatively, while stochastic is providing positive signs over the four-hour timeframe. Accordingly, the next potential move depends on the sensitive levels among 0.8280 support and 0.8400 resistance, where breaching 0.8280 will lead to 0.8170 and 0.8100, while surpassing 0.8400 will grab the pair outside the main descending channel and put price above the previously breached ascending support for the bullish trend again.

The trading range for the week is expected among the keysupport at 0.8100 and the key resistance at 0.8550.

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

Previous Report

Support0.82800.82000.81700.81000.8065
Resistance0.83150.8400.84400.84800.8550
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 below 0.8400 OR selling the pair with four-hour closing below 0.8280 targeting 0.8170 and 0.8100 and stop loss above 0.8400 may be appropriate