Weekly
   •   Last Candlesticks pattern: N/A
   •   ime of formation: N/A
   •   Trend bias: Near term up
Daily
   •   Last Candlesticks pattern: Hammer
   •   Time of formation: 3 Feb 2016
   •   Trend bias: Up
EURGBP – 0.8583
The single currency only retreated to 0.8524 (just missed our long entry at 0.8520) before finding renewed buying interest there and the subsequent rally adds credence to our view that the rise from 0.8312 low is still in progress, hence bullishness remains for this move to extend gain to 0.8735 resistance, however, break there is needed to confirm early fall from 0.8788 has ended at 0.8312, bring retest of this level which is likely to hold on first testing due to near term overbought condition, bring retreat later.
On the downside, whilst initial pullback to 0.8600-05 cannot be ruled out, reckon the Tenkan-Sen (now at 0.8566) would limit downside and bring another rise later to aforesaid upside targets. Below said support at 0.8524 would risk test of the Kijun-Sen (now at 0.8513) but only a daily close below there would signal top is formed, bring further fall towards support at 0.8457. Looking ahead, a drop below this level would signal the rise from 0.8312 has ended, bring subsequent decline to 0.8400-10 and then test of indicated support at 0.8384.Â
Recommendation: Buy again at 0.8580 for 0.8730 with stop below 0.8500.
On the weekly chart, as the single currency has maintained a firm undertone after recent rally above previous resistance at 0.8531, retaining our bullish view for the rebound from 0.8312 to bring further gain to 0.8700-10, however, as broad outlook remains consolidative, reckon upside would be limited to 0.8750 and 0.8788 resistance should remain intact, bring retreat later. A break of 0.8788 would bring test of previous chart resistance at 0.8857 but only a weekly close above there would signal an upside break of early established broad range has occurred.
On the downside, although initial pullback to 0.8600-05 cannot be ruled out, reckon the Kijun-Sen (now at 0.8581) would limit downside and bring another rise later. A weekly close below the Tenkan-Sen (now at 0.8524) would defer and suggest top is possibly formed, risk weakness to 0.8495-00 but a drop below last week’s low at 0.8457 is needed to add credence to this view, bring further fall to 0.8400-10, however, only a break of said support at 0.8384 would suggest the rebound from 0.8312 has ended instead, extend weakness to 0.8350-55 and eventually retest of 0.8312.
