Morning Report

eurgbp08_02_2012

The pair traded positively yesterday, breaching the resistance of the descending channel shown above, but we find the retest level of the previously breached support of the minor channel formed a resistance, preventing the pair from extending the upside move. In general, trading below 0.8415 supports the possibility of an intraday downside movement today, supported by Stochastic; however, our expectations depend on two conditions; the first is trading below 0.8325 and the second is that the level of 0.8415 must remain intact.

The trading range for today is among the major support at 0.8170 and the major resistance at 0.8415.

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

Previous Report

Weekly Report

Support0.83250.82550.82000.81700.8100
Resistance0.84150.84400.84800.85500.8605
RecommendationBased on the chart and explanations above, our opinion is selling the pair with an hourly closing below 0.8325, and taking profit at 0.8170 and stop loss above 0.8415 might be appropriate.