Morning Report

eurgbp07_03_2012

The pair is still trading within the ascending channel shown above between the SMA 50, which formed a strong resistance at 0.8380, and the channel's support at 0.8300. Consolidation below the support level of the general trend mentioned in our previous report suggests a downside bias over intraday basis, noting that this bearishness requires a clear breach of the ascending channel's support and then stability below 0.8380 and most importantly below 0.8440.

The trading range for today is among the major support at 0.8170 and the major resistance at 0.8380.

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

Previous Report

Weekly Report

Support0.83000.82550.82000.81700.8100
Resistance0.83800.84400.85000.85500.8605
RecommendationBased on the chart and explanations above, our opinion is selling the pair with 4-hour closing 0.8300, targeting 0.8170 and stop loss above 0.8380 might be appropriate.