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
As the single currency has surged again this week, adding credence to our bullish view that medium term upmove is still in progress and upside bias remains for the uptrend to extend headway to 0.9250-55, then towards 0.9290-00, however, near term overbought condition should prevent sharp move beyond 0.9350-55 and price should falter 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.
On the downside, whilst initial pullback to the Tenkan-Sen (now at 0.9144) and 0.9100-10 cannot be ruled out, reckon 0.9060-65 would limit downside and brig another rise later. A daily close below the Kijun-Sen (now at 0.9033) would defer and risk test of support at 0.9008 but a daily close below there is needed to signal a temporary top is formed, bring test of previous resistance at 0.8950 and later towards 0.8895-00, having said that, reckon the upper Kumo (now at 0.8841) would contain downside, bring another rise later.
Recommendation: Buy again at 0.9070 for 0.9270 with stop below 0.8970.
On the weekly chart, this week’s rally looks set to form another white candlestick (4th in a row), 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 0.9250-60, then 0.9300-10, however, near term overbought condition should limit upside to 0.9350 and reckon 0.9380-85 (100% projection of 0.8312-0.8950 measuring from 0.8743) would hold. 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 0.9100-10 cannot be ruled out, reckon 0.9050-55 would limit downside and the Tenkan-Sen (now at 0.8990) should hold, bring another rise. A drop below support at 0.8891 would defer and suggest top is possibly formed, bring retracement of recent upmove to 0.885-60, then 0.8795-00 but reckon support at 0.8743 would hold. Only a weekly close below this support would retain bearishness for subsequent decline to 0.8650-55 but the lower Kumo (now at 0.8571) should remain intact, bring another rally later.
