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 – 0.9218
As the single currency has finally retreated after rising to 0.9307 earlier this week, suggesting a week of consolidation below this level would be seen and below the Tenkan-Sen (now at 0.9165) would add credence to this view, bring retracement to the Kijun-Sen (now at 0.9099), however, still reckon downside would be limited to 0.9050-55 and support at 0.9008 should remain intact, bring another upmove later. Above said resistance at 0.9307 would signal medium term upmove is still in progress and extend headway to 0.9350-55 but near term overbought condition should prevent sharp move beyond 0.9380-85 (100% projection of 0.8312-0.8950 measuring from 0.8743) and reckon 0.9400-10 would hold from here, 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 0.9165) and then the Kijun-Sen (now at 0.9099) cannot be ruled out, reckon 0.9050-55 would limit downside and brig another rise later. A daily close below support at 0.9008 would defer and suggest a temporary top has been formed, bring retracement of recent upmove to previous resistance at 0.8950 and later towards 0.8895-00, having said that, reckon the upper Kumo (now at 0.8868) would contain downside, bring another rise later.
Recommendation: Buy again at 0.9050 for 0.9250 with stop below 0.8980.
On the weekly chart, although the single currency extended recent rise to 0.9307 earlier this week, the subsequent retreat looks set to form a black candlestick with a long upper shadow (shooting star alike), hence consolidation below this level would be seen and pullback to 0.9130-35 and then 0.9095-00 is likely, however, reckon the Tenkan-Sen (now at 0.9025) would limit downside and bring another rise later. Above said resistance at 0.9307 would signal recent erratic rise from 0.8304 is still in progress and may extend gain to 0.9350-60, then 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 0.9130-35 cannot be ruled out, reckon 0.9050-55 would limit downside and the Tenkan-Sen (now at 0.9025) 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 test of the Kijun-Sen (now at 0.8810) 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.
