EUR/GBP Candlesticks and Ichimoku Analysis

Weekly
    •    Last Candlesticks pattern: N/A
    •    ime of formation: N/A
    •    Trend bias: Near term up

Daily
    •    Last Candlesticks pattern: Doji
    •    Time of formation: 21 Jul 2017
    •    Trend bias: Up

EURGBP – 0.8951

The single currency has traded narrowly after rising to 0.8995 resistance at 0.8995 and initial sideways trading would be seen, however, reckon downside would be limited to 0.8830-35 and renewed buying interest should emerge around 0.8795-00, bring another rise later to psychological resistance at 0.9000, break there would extend headway to 0.9090 (61.8% Fibonacci retracement) but loss of momentum should prevent sharp move beyond 0.9150-60, bring retreat later. 

On the downside, whilst initial pullback to 0.8830-35, then 0.8800 is likely, renewed buying interest should emerge around latter level and bring another rise. A drop below indicated support at 0.8743 would defer and suggest a temporary top is possibly formed, bring correction of recent rise to 0.8690-00 and then towards previous support at 0.8652 but price should stay above the lower Kumo  (now at 0.8597) and bring rebound later. 

Recommendation: Buy again at 0.8795 for 0.8995 with stop below 0.8695.

On the weekly chart, as the single currency has maintained a firm undertone after last week’s rally to 0.8995, adding credence to our bullish view that the rise from 0.8304 is still in progress and upside bias remains for this move to extend gain to 0.9000, then towards 0.9090 (61.8% Fibonacci retracement of 0.9576-0.8304) would be seen, however, a weekly close above resistance at 0.9142 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 0.9200-10.

On the downside, although pullback to the Tenkan-Sen (now at 0.8824) cannot be ruled out, reckon downside would be limited to 0.8795-00 and bring another rise later. Below support at 0.8743 support would defer and risk correction to 0.8700 but reckon downside would be limited to the Kijun-Sen (now at 0.8654) and the lower Kumo (now at 0.8751) should remain intact, bring another rally later.