Morning Report

eurgbp25_01_2012

The pair continues to trade within the minor ascending channel shown above, while we continue to anticipate a breach of the sensitive levels among 0.8295 support and 0.8405 resistance to confirm the upcoming possible move, where breaching the aforementioned support will signal that the channel is a continuation flag supporting resuming the downside trend within the main descending channel-colored in red- while breaching 0.8405 will put the pair above the support of the main bullish trend that was previously breached , targeting initially 0.8550.

The trading range for the day is expected among the keysupport at 0.8200 and the key resistance at 0.8480.

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

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Weekly Report

Support0.83250.82950.82000.81700.8100
Resistance0.84050.84400.84800.85500.8605
RecommendationBased on the charts and explanations above we recommend buying the pair with four-hour closing above 0.8405 targeting 0.8550 and 0.8635 ,stop loss below 0.8295 OR selling the pair with four-hour closing below 0.8295 targeting 0.8170 and 0.8100 with stop loss above 0.8400