Weekly Report (30 Jan-3 Feb)

eurgbp30_01_2012

The pair was able to breach the resistance level of the descending channel as shown above, but we find that it is still unable to breach the retest level of the previously breached main support, which turned into resistance now, at 0.8410. In general, we depend on the mentioned breach to hold onto the suggested upside move for the coming period, targeting 0.8550 and then 0.8680, taking into consideration that a breach of 0.8320 could negate our positive scenario and trigger a downside movement.

The trading range for this week is among the major support at 0.8200 and the major resistance at 0.8680.

The short-term trend is to the upside as far as 0.8170 remains intact, targeting 1.0370.

Previous Report

Support0.83750.83200.82550.82000.8170
Resistance0.84100.84400.84800.85500.8605
RecommendationBased on the chart and explanations above, our opinion is buying the pair with 4-hour closing above 0.8410, and taking profit in stages at (0.8550 and 0.8635) and stop loss with a 4-hour closing below 0.8320 might be appropriate this week.