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 – 0.8445
Although the single currency fell briefly to 0.8312 earlier this month, as euro has staged a strong rebound after holding above previous chart support at 0.8304, suggesting low has possibly been formed there and consolidation with mild upside bias is for another bounce, above 0.8530-35 would extend gain to 0.8592 resistance but a daily close above there is needed to signal recent decline has ended instead, bring further gain to the lower Kumo (now at 0.8630), then test of the upper Kumo (now at 0.8656), however, price should falter well below previous resistance at 0.8735, bring retreat later.
On the downside, whilst initial pullback to 0.8400-10 cannot be ruled out, if our view that low has been formed at 0.8312 is correct, downside would be limited to support at 0.8351 and bring another rebound later. A daily close below 0.8351 would abort and signal the rebound from 0.8312 has ended, bring retest of this level first. Looking ahead, only a drop below 0.8304 support would revive bearishness and signal early downtrend has resumed for weakness to 0.8270-75, then 0.8250 but price should stay well above 0.8200-10.
Recommendation: Buy at 0.8400 for 0.8600 with stop below 0.8300.
On the weekly chart, as the single currency found good support at 0.8312 last week and staged a strong rebound, suggesting consolidation above this level would be seen and initial upside risk remains, above this week’s high at 0.8531 would bring recovery to the Tenkan-Sen (now at 0.8550) but break of resistance at 0.8592 is needed to signal the fall from 0.8857 has ended, then test of the Kijun-Sen (now at 0.8677) would follow, however, as broad outlook remains consolidative, reckon upside would be limited to 0.8788 resistance, bring retreat later.
On the downside, although initial pullback to 0.8400 cannot be ruled out, as long as minor support at 0.8351 holds, prospect of another rebound remains. A drop below 0.8351 would bring test of indicated support at 0.8304-12, once this level is penetrated, this would signal decline from 0.9576 top has resumed for retest of 0.8304 but only break there would extend the fall from 0.9576 top for retracement of medium term upmove to previous support at 0.8251, then 0.8200.
