Morning Report

eurgbp22_02_2012

The pair's movement is still limited within the ascending minor channel shown above, while the technical conflict between the negativity on momentum indicators and the positivity of SMA 50 is still seen. Therefore, our suggested scenario remains valid, where we are waiting for a breach of one of the critical level between the support at 0.8285 and the resistance at 0.8425 to confirm the pair's next move.

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

Support0.83450.82800.82550.82000.8170
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.