Morning report

The royal pair is about to finish the projected downside correction around 0.8720-0.8700 areas which represent 61.8% Fibonacci expansion level, where we think that it will be able to build a positive technical base to resume the major upside movement of the harmonic bullish pattern of the four-hour time frame, targeting 0.8905 zones. This prediction is based on the bullish candlestick structure in addition to the strong support obtained from 61.8% level. MACD started to adjust upwards.

Trading range is among the key support at 0.8585 and key resistance now at 0.8905.

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 0.8700 targeting 0.8805 and stop loss below 0.8615 might be appropriate.