Morning Report

eurgbp16_02_2012

The pair reversed to the downside yesterday approaching the retest level of the previously breached descending channel's resistance that turned into a support level at 0.8290, while forming the suggested bullish technical pattern is still valid; however, the pair must gain some positive momentum to breach the suggested neckline around 0.8425 in order to activate the positive effect of this pattern. In general, the upside move is still valid, noting that a breach of 0.8290 could trigger a downside movement towards 0.8170 and then 0.8100.

The trading range for today is among the major support at 0.8200 and the major resistance at 0.8480.

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

Previous Report

Support0.82900.82550.82000.81700.8100
Resistance0.83550.84250.84800.85500.8605
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 0.8355 might be appropriate. Or selling the pair with 4-hour closing below 0.8290, targeting 0.8170 and then 0.8100 and stop loss with 4-hour closing above 0.8355 might be also appropriate.