Weekly Report

eurgbp02_04_2012

The pair is fluctuating around the support level of the ascending channel shown above on the daily chart, while the pair closed the session on Friday at this level, which supportsthe suggested upside move to remain valid. Stochastic enters oversold areas to support the suggested incline. A breach of 0.8365 and stability above it might trigger a strong rebound towards 0.8460-75, which is our first target.

The trading range for today is among the major support at 0.8255 and the major resistance at 0.8555.

The short-term trend is to the upside as far as 0.7785 remains intact, targeting 1.0370.

Previous Report

Support0.83400.82550.82000.81700.8100
Resistance0.83650.83950.84600.85550.8610
RecommendationBased on the chart and explanations above, our opinion is buying the pair around 0.8340, targeting 0.8460 and stop loss below 0.8255 might be appropriate.