Morning Report

eurgbp15_02_2012

The SMA 50 supports the royal pair, where the pair is trading above this level since February 7, which confirms the strength of the breach of the descending channel shown above. In addition, we recognize a possible bullish technical structure shown in green, where this pattern in addition to the positivity seen on stochastic drives us to expect an intraday upside move today. A clear breach of 0.8405 and then 0.8425, in addition to the daily closing above 0.8355 are required for our expectations to prevail. Our targets are at 0.8550.

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

Support0.83550.82950.82550.82000.8170
Resistance0.84250.84400.84800.85500.8605
RecommendationBased on the chart and explanations above, our opinion is buying the pair with 4-hour closing above 0.8425, targeting 0.8550 and then 0.8660 and stop loss with 4-hour closing below 0.8310 might be appropriate