EUR/GBP: Ichimoku clouds



Let's look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the blue line is directed downwards, while the red one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument has been corrected to the Tenkan-sen line. One of the previous minimums of Chikou Span line is expected to be a support level (0.8916). The closest resistance level is Kijun-sen line (0.8959).




On the daily chart Tenkan-sen line is below Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading below Tenkan-sen and Kijun-sen lines; the Bearish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (0.8881). The closest resistance level is the upper border of the cloud (0.8997).


On the both charts the instrument is still falling. It is recommended to open short positions at current price with the target at the level of previous minimum of Chikou Span line (0.8881) and Stop Loss at the lower border of the cloud (0.8997).

Scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL

  • Entry Point

    0.8934

  • Take Profit

    0.8881

  • Stop Loss

    0.8997

  • Key Levels

    0.8881, 0.8916, 0.8959, 0.8997