Morning Report

eurgbp03_04_2012

The pair breached the support level of the minor ascending channel and provided a four-hour closing below this level, which added some concerns regarding the suggested upside move, where the mentioned channel represents a bearish continuation flag pattern that supports the pair to remain stable within the descending main channel. But on the other hand, the pair settled above 0.8300, while Stochastic is still positive over daily basis. Therefore, our intraday upside move remains valid, but trading again above 0.8340 is necessary. A breach of 0.8290-55 might affect the suggested upside move significantly.

The trading range for today is among the major support at 0.8255 and the major resistance at 0.8460.

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

Previous Report

Weekly Report

Support0.82900.82550.82000.81700.8100
Resistance0.83400.83650.83950.84600.8555
RecommendationBased on the chart and explanations above, our opinion is buying the pair with 4-hour closing above 0.8340, targeting 0.8460 and stop loss below 0.8255 might be appropriate.