• Last Candlesticks pattern: N/A
• ime of formation: N/A
• Trend bias: Near term up
• Last Candlesticks pattern: Doji
• Time of formation: 21 Jul 2017
• Trend bias: Up
EURGBP – 0.9141
Euro’s retreat after rising to 0.9307 last week has retained our view that further consolidation below this level would be seen and test of the Kijun-Sen (now at 0.9115) is likely, break there would bring retracement to 0.9060-65, however, reckon support at 0.9008 would hold and bring another rise later, above 0.9225-30 would suggest the pullback from 0.9307 has ended, bring further gain to 0.9280 but break of said resistance at 0.9307 is needed to confirm medium term upmove has resumed and extend headway to 0.9350-55. Having said that, near term overbought condition should prevent sharp move beyond 0.9380-85 (100% projection of 0.8312-0.8950 measuring from 0.8743) and reckon 0.9400-10 would hold from here, risk from there is seen for a strong retreat to take place later.
On the downside, whilst initial pullback to the Kijun-Sen (now at 0.9115) is likely, reckon downside would be limited to 0.9060-65 and bring another rise later. A drop below said support at 0.9008 would defer and suggest a temporary top has been formed at 0.9307, bring retracement of recent upmove to previous resistance at 0.8950 and later towards the upper Kumo (now at 0.8906), having said that, reckon downside would be limited to 0.8830-35 and the lower Kumo (now at 0.8799) would contain downside, bring another rise later.
Recommendation: Buy again at 0.9050 for 0.9250 with stop below 0.8980.
On the weekly chart, as the single currency has retreated after rising to 0.9307 last week (black candlestick with long upper shadow did form last week), retaining our view that consolidation below said resistance would take place and initial downside risk remains for correction to 0.9095-00, then 0.9050-60, however, reckon the Tenkan-Sen (now at 0.9025) would limit downside and bring another rise later. Above 0.9225-30 would bring retest of said resistance at 0.9307 but break there is needed to confirm recent erratic rise from 0.8304 has resumed and extend gain to 0.9350-60, then 0.9380-85 (100% projection of 0.8312-0.8950 measuring from 0.8743). Looking ahead, break there is needed to retain bullishness and signal the entire correction from 0.9576 top has ended at 0.8304 and encourage for further subsequent gain to 0.9450.
On the downside, although pullback to 0.9095-00 and 0.9050-60 cannot be ruled out, reckon the Tenkan-Sen (now at 0.9025) would limit downside and bring another rise later. A drop below support at 0.8891 would defer and suggest ta temporary top has possibly been formed, bring retracement of recent upmove to 0.885-60, then test of the Kijun-Sen (now at 0.8810) but reckon support at 0.8743 would hold. Only a weekly close below this support would retain bearishness for subsequent decline to 0.8650-55 but the lower Kumo (now at 0.8571) should remain intact, bring another rally later.