Morning Report

eurgbp21_02_2012

The pair is stable now above SMA 50, which suggests that the upside move could extend over intraday basis; however, momentum indicators are within overbought areas, pressuring the pair to the downside towards the support level of the minor ascending channel shown above. A breach of this support around 0.8280 could turn this channel into a bearish Flag continuation pattern. Therefore, we still uncertain in regards to the pair's next move, so we recommend observing the pair around the critical levels of 0.8280 and 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

Weekly Report

Support0.83400.82800.82550.82000.8170
Resistance0.84250.84800.85500.86050.8635
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.