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 – 0.9001
Euro’s retreat from last month’s high of 0.9307 turned out to be stronger than expected, suggesting caution on our bullishness and 0.8980 needs to hold to retain prospect of another rise, above the Tenkan-Sen (now at 0.9104) would bring test of the Kijun-Sen (now at 0.9145) but a daily close above resistance at 0.9203 is needed to retain bullishness and signal the pullback from 0.9307 has ended, bring further gain to 0.9265-70, having said that, break of said recent high at 0.9307 is needed to confirm recent upmove has resumed and extend headway to 0.9350-55 and possibly towards 0.9380-85 (100% projection of 0.8312-0.8950 measuring from 0.8743), however, reckon 0.9400-10 would hold from here, risk from there is seen for a strong retreat to take place later.
On the downside, below 0.8980 would suggest a temporary top has been formed at 0.9307, bring retracement of recent upmove to previous resistance at 0.8950 and later towards 0.8905-10 but the lower Kumo (now at 0.8870) would limit downside and reckon 0.8830-35 should hold from here, price should stay above 0.8790-00, bring another rise later.
Recommendation: Hold long entered at 0.9050 for 0.9250 with stop below 0.8980.
On the weekly chart, the single currency has slipped again this week, dampening our bullishness and 0.8980 need to hold to retain prospect of another rise, above 0.9225-30 would bring retest of 0.9307 but break of this recent high is needed to retain bullishness and extend the erratic rise from 0.8304 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, below 0.8980 would defer and risk weakness to 0.8940-50 but only a drop below support at 0.8891 would suggest a temporary top has possibly been formed at 0.9307, bring retracement of recent upmove to 0.8850-60, 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.
