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 – 0.9045
Although the single currency edged higher again this week, the quick retreat from 0.9088 formed a doji star on the daily chart (with relatively long upper shadow), suggesting 1-2 weeks of consolidation below this level would be seen and mild downside bias is for test of support at 0.8923, however, a daily close below the Kijun-Sen (now at 0.8916) is needed to signal a temporary top is formed, bring retracement of recent upmove to 0.8875-80, then 0.8830-35, having said that, renewed buying interest should emerge around 0.8795-00, bring another rise later.
On the upside, above said resistance at 0.9088 would extend recent erratic rise from 0.8304 low to 0.9150-60, however, loss of momentum should prevent sharp move beyond 0.9140-45 and reckon upside would be limited to 0.9200-10, price should falter below 0.9290-00, risk from there has increased for another retreat later.
Recommendation: Buy again at 0.8795 for 0.8995 with stop below 0.8695.
On the weekly chart, as the single currency has eased after rising to 0.9088 this week, suggesting minor consolidation would be seen and initial downside bias is seen for pullback to 0.8950-60, then towards the Tenkan-Sen (now at 0.8904), break there would bring minor correction to 0.8891 support and later 0.8840-50, however, reckon 0.8795-00 would limit downside and bring another rise later. Above said resistance at 0.9088 would add credence to our bullish view that the rise from 0.8304 is still in progress and extend gain to minor resistance at 0.9142. 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 0.9200-10.
On the downside, although pullback to the Tenkan-Sen (now at 0.8904) 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 the Kijun-Sen (now at 0.8700) but reckon downside would be limited to 0.8650-55 and the lower Kumo (now at 0.8571) should remain intact, bring another rally later.
