Morning Report

eurgbp01_02_2012

The pair declined sharply to breach the minor ascending channel as shown above on the chart, which indicates that this channel formed a bearish Flag pattern that supports the continuity of the downside move inside the short-term descending channel. The current decline occurred after the retest level of the previously breached upside general trend's support stood still against the bullishness -shown on the minor image-. This supports the downside movement to extend over the short-term. The targets are at 0.8170 and 0.8100, while consolidation below 0.8410 is necessary for the pair to achieve these targets.

The trading range for today is among the major support at 0.8100 and the major resistance at 0.8360.

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

Previous Report

Weekly Report

Support0.82550.82000.81700.81000.8065
Resistance0.83350.83600.84100.84400.8480
RecommendationBased on the chart and explanations above, our opinion is selling the pair around 0.8335, and taking profit in stages at (0.8200 and 0.8100) and stop loss with above 0.8410 might be appropriate today.