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
The single currency met resistance at 0.8509 late last week and has retreated, suggesting the rebound from 0.8312 has possibly ended at 0.8531 and consolidation with downside bias is seen for further fall to 0.8351 support, however, a daily close below there is needed to add credence to this view and bring resumption of recent decline for retest of 0.8312. 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.
On the upside, whist recovery to the Tenkan-Sen (now at 0.8447) cannot be ruled out, reckon said resistance at 0.8509 (last week’s high) would hold and bring another decline later. Only a break of said previous resistance at 0.8531 would shift risk back to upside for the rebound from 0.8312 low to bring retracement of recent decline towards 0.8592 resistance but a daily close above there is needed to signal recent decline has ended instead, bring further gain to the upper Kumo (now at 0.8623), then towards 0.8660-65, however, price should falter well below previous resistance at 0.8735, bring retreat later.
Recommendation: Hold long entered at 0.8400 for 0.8600 with stop below 0.8310.
On the weekly chart, as the single currency has retreated again after brief recovery to 0.8509, suggesting initial downside risk remains for weakness to 0.8350-55, however, as long as recent support at 0.8312 holds, consolidation with mild upside bias is seen for another rebound, above said resistance at 0.8509 would bring test of 0.8531, break there would bring test of 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 gain to 0.8675-80 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 0.8351 support 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.
