Morning report

After reaching our extended technical target of the negative harmonic structure at 127% Fibonacci of the CD wave at 0.9090, the royal pair seems like building a solid technical base from where it will be able to bounce as seen on the provided four-hour chart. The candlestick formation alongside the support it found from the lower line of Keltner channel proves the upside potential for the intraday basis. Stochastic, A.C and MACD started to support the expected upside scenario.

Trading range is among the key support at 0.8930 and key resistance now at 0.9340.

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 0.9100 targeting 0.9205 and stop loss below 0.9010 might be appropriate.