Morning report

The royal pair has reached the expected technical target at 0.8905-check it here-for the classical cup with handle pattern along with the extension of the harmonic structure as we discussed since the 18th of August. Now the pair has confirmed the daily breakout of the bearish trend line as seen on the secondary image. Therefore we keep our short term outlook to the upside whilethe intraday bullishness is to continue towards the technical target of the pattern at 0.9070 but a slight correction may occur before resuming the positive scenario.

Trading range is among the key support at 0.8760 and key resistance now at 0.9070.

The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.

RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8905 targeting 0.9000 and stop loss below 0.8825 might be appropriate.