Weekly
• Last Candlesticks pattern: N/A
• Time of formation: N/A
• Trend bias: Near term up
Daily
• Last Candlesticks pattern: Doji
• Time of formation: 21 Jul 2017
• Trend bias: Up
EURGBP – 0.9111
As the single currency has continued trading with a firm undertone, suggesting medium term upmove is still in progress and bullishness remains for medium term uptrend to extend headway to 0.9150-55, then towards 0.9190-00, however, near term overbought condition should prevent sharp move beyond 0.9250-55 and price should falter well below 0.9380-85 (100% projection of 0.8312-0.8950 measuring from 0.8743), risk from there is seen for a strong retreat to take place later this month.
On the downside, whilst initial pullback to 0.9050 and possibly support at 0.9008 cannot be ruled out, however, previous resistance at 0.8995 should limit downside and bring another rise later. Only a daily close below the Kijun-Sen (now at 0.8943) would signal a temporary top is formed, bring retracement of recent upmove to 0.8920-25, then towards previous support at 0.8891, once this level is penetrated, this would provide confirmation that recent upmove has ended, bring subsequent decline to 0.8850 but 0.8830-35 should hold.
Recommendation: Buy again at 0.8925 for 0.9125 with stop below 0.8825.
On the weekly chart, as the single currency has risen again after brief pullback, adding credence to our bullish view that recent erratic rise from 0.8304 is still in progress and upside bias remains for this move to extend gain to 0.9200-10, then towards 0.9250-60, however, near term overbought condition should limit upside to 0.9300-10 and upside should be limited to 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 0.9000-10 cannot be ruled out, reckon the Tenkan-Sen (now at 0.8939) would limit downside and bring another rise. A drop below support at 0.8891 would defer and suggest top is possibly formed, bring retracement of recent upmove to 0.8795-00 and then towards support at 0.8743, having said that, a weekly close below the Kijun-Sen (now at 0.8728) is needed to retain bearishness for subsequent decline to 0.8650-55 but the lower Kumo (now at 0.8571) should remain intact, bring another rally later.
