Weekly Report

eurgbp27_02_2012

The pair was able to remain stable above the main support shown above, supporting the upside move to extend over the short-term, supported by SMA 50. Our next target is breaching the barrier at 0.8550 in order to confirm the general upside move, while consolidation with a daily closing above 0.8430 is necessary for the suggested positive scenario.

The trading range for this week is among the major support at 0.8370 and the major resistance at 0.8660.

The short-term trend is to the upside as far as 0.8170 remains intact, targeting 1.0370.

Previous Report

Support0.84300.83700.83400.82950.8255
Resistance0.85000.85500.86050.86600.8720
RecommendationBased on the chart and explanations above, our opinion is buying the pair around 0.8430, targeting 0.8550 and then 0.8660 and stop loss with 4-hour closing below 0.8370 might be appropriate.