Weekly Report

eurgbp05_03_2012

The royal pair is slightly biased to the upside after reaching the support level of the minor channel shown above which we indicated that it may form a bearish continuation Flag pattern in case its support level at 0.8295 was breached, while the pair could continue the downside movement during the next period after it failed it settle above the ascending mains support at 0.8440. The positivity seen on Stochastic could support the pair to retest SMA 50 at 0.8385 before retesting the critical support and the moving south towards 0.8170 and then 0.8100.

The trading range for this week is among the major support at 0.8100 and the major resistance at 0.8440.

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

Previous Report

Support0.82950.82550.82000.81700.8100
Resistance0.83850.84400.85000.85500.8605
RecommendationBased on the chart and explanations above, our opinion is selling the pair with 4-hour closing 0.8295, targeting 0.8170 and then 0.8100 and stop loss above 0.8385 might be appropriate.