Weekly Report

eurgbp23_04_2012

The pair fluctuates now around 50% Fibonacci correction -of the entire incline from 0.6534 to 0.9802- around 0.8170, while the pair is still limited within the descending channel shown above. Therefore, we expect a downside movement this week supported by SMA 50, targeting 0.8100 and then 0.8000 mainly. A breach of 0.8290 might weaken our expectations.

The trading range for this week is among the major support at 0.8000 and the major resistance at 0.8290.

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

Previous Report

Support0.81700.81000.80750.80000.7940
Resistance0.82200.82900.83250.83650.8395
RecommendationBased on the chart and explanations above, our opinion is selling the pair around 0.8220, targeting 0.8100 and then 0.8000 and stop loss with 4-hour closing above 0.8290 might be appropriate