Morning Report

eurgbp14_02_2012

The pair is still fluctuating within a sideway range, where the pair's movement is still limited between the support level at 0.8310, which represents the retest level of the previously breached resistance of the descending channel shown above, and the resistance level at 0.8420, which represents the retest level of the previously breached general upside trend. Therefore, we need to observe the pair's behavior around these levels, which could determine the next move. Stochastic and SMA 50 are positive, which suggests an intraday upside move.

The trading range for today is among the major support at 0.8170 and the major resistance at 0.8550.

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

Previous Report

Support0.83550.83100.82550.82000.8170
Resistance0.84200.84400.84800.85500.8605
RecommendationBased on the chart and explanations above, our opinion is buying the pair with 4-hour closing above 0.8420, targeting 0.8550 and then 0.8660 and stop loss with 4-hour closing below 0.8310 might be appropriate. Or selling the pair with 4-hour closing below 0.8310, and taking profit at 0.8170 and then 0.8100 and stop loss above 0.8420 might be appropriate.