Morning Report

eurgbp17_02_2012

The pair wasn't able to settle below the retest level of 0.8290, where the pair remained within the scope shadowed above in yellow. Therefore, we need the pair to breach one of the critical levels between the support at 0.8285 and the resistance at 0.8425, where a breach of the mentioned support could force the pair to return to the previously breached downside movement, targeting areas around 0.8170 initially, while a breach of 0.8425 should activate the bullish technical structure, which could take the pair towards 0.8550 and then 0.8660.

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

Support0.82850.82550.82000.81700.8100
Resistance0.83400.84250.84800.85500.8605
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 0.8340 might be appropriate. Or selling the pair with 4-hour closing below 0.8285, targeting 0.8170 and then 0.8100 and stop loss with 4-hour closing above 0.8340 might be also appropriate.