Weekly Report

eurgbp20_02_2012

The royal pair is still trading within the ascending minor channel shown above, where SMA 50 pressures the pair over intraday basis, while Stochastic is positive over 4-hour basis, which could support the pair to rebound. But in general, we are still waiting the pair to breach one of the critical levels to confirm the next move, noting that the critical levels are the support 0.8280 and the resistance at 0.8425.

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

Support0.82800.82550.82000.81700.8100
Resistance0.83350.84250.84800.85500.8605
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.