Morning Report

eurgbp08_03_2012

The pair is still trading within a narrow range between 0.8305 and 0.8380, where Stochastic provides positive signs over daily basis, while we still expect that the current ascending minor channel is forming a bearish Flag continuation pattern, which requires a breach of the mentioned support level. Therefore, our negative expectations remain valid as long as the pair is stable 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

Support0.83050.82550.82000.81700.8100
Resistance0.83800.84400.85000.85500.8605
RecommendationBased on the chart and explanations above, our opinion is selling the pair with 4-hour closing 0.8305, targeting 0.8170 and stop loss above 0.8380 might be appropriate.