Morning Report

eurgbp23_02_2012

The pair was able to breach the sensitive areas between 0.8425 and 0.8445 activating the bullish scenario and supports the positivity over intraday and short term basis. The importance of breaching 0.8425 is that it carried the pair above the support for the general trend as shown on the secondary chart and therefore we need a weekly closing above it to confirm the return of the general upside move. Breaching areas of 0.8425 might trigger an intraday downside correction initially towards 0.8290.

The trading range for today is expected among the key support at 0.8370 and the key resistance at 0.8550.

The short term trend is to the upside as far as 0.8170 remains intact with targets at 1.0370.

Previous Report

Weekly Report

Support0.84450.84250.83700.82900.8255
Resistance0.84800.85500.86050.86350.8680
RecommendationBased on the charts and explanations above our opinion is buying the pair around 0.8445 targeting 0.8550 and stop loss with four-hour closing below 0.8370 might be appropriate