• Last Candlesticks pattern: N/A
• ime of formation: N/A
• Trend bias: Near term up
• Last Candlesticks pattern: Hammer
• Time of formation: 3 Feb 2016
• Trend bias: Up
EURGBP – 0.8677
Although the single currency rose to as high as 0.8771 earlier this week, the subsequent retreat suggests consolidation below this level would be seen and pullback to 0.8600-10 cannot be ruled out, however, reckon the Kijun-Sen (now at 0.8778) would limit downside and bring another rise later, above said resistance at 0.8771 would extend further gain to 0.8788 resistance, then 0.8850 but loss of upward momentum should prevent sharp move beyond 0.8900, risk from there is seen for another retreat later.
On the downside, whilst initial pullback to 0.8600-10 cannot be ruled out, reckon the Kijun-Sen (now at 0.8578) would limit downside and bring another rise later to aforesaid upside targets. Below the upper Kumo (now at 0.8550) would defer and risk weakness to 0.8524 support but only a daily close below there would signal top has been formed, bring retracement of recent upmove to 0.8500, then towards support at 0.8457. Looking ahead, a drop below this level would signal the rise from 0.8312 has ended, bring subsequent decline to 0.8400-10 and then test of indicated support at 0.8384.
Recommendation: Buy again at 0.8580 for 0.8730 with stop below 0.8500.
On the weekly chart, as the single currency has eased after meeting resistance at 0.8771, suggesting minor consolidation would be seen and pullback to 0.8600 cannot be ruled out, however, reckon downside would be limited to 0.8570-75 and bring another rise later, above 0.8771 would bring test of previous resistance at 0.8788 but only break there would retain bullishness and encourage for a test of previous chart resistance at 0.8857 which is likely to hold form here.
On the downside, although initial pullback to 0.8600-05 cannot be ruled out, reckon the Kijun-Sen (now at 0.8585) would limit downside and bring another rise later. A weekly close below the Tenkan-Sen (now at 0.8542) would defer and suggest top is possibly formed, risk weakness to 0.8495-00 but a drop below support at 0.8457 is needed to add credence to this view, bring further fall to 0.8400-10, however, only a break of said support at 0.8384 would suggest the rebound from 0.8312 has ended instead, extend weakness to 0.8350-55 and eventually retest of 0.8312.