EUR/GBP: Ichimoku clouds



Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is below the price chart, current cloud is going to reverse from ascending to descending. The instrument is trading below Tenkan-sen and Kijun-sen lines; the Bearish trend is still strong. Borders of the cloud serve as the closest support (0.8635) and resistance (0.8610) levels




On the daily chart Tenkan-sen line is below Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above 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 (0.8593). The closest resistance level is the upper border of the cloud (0.8710).


On the four-hour chart the instrument is trading within the cloud. On the daily chart the Bearish trend is still strong. It is not recommended to open positions at current price. Pending orders should be placed at the cloud’s borders: sell at the level of 0.8600, with Take Profit at 0.8590 and Stop Loss at 0.8635; buy at the level of 0.8635, with Take Profit at 0.8660 and Stop Loss at 0.8600.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    0.8600

  • Take Profit

    0.8590

  • Stop Loss

    0.8635

  • Key Levels

    0.8593, 0.8610, 0.8635, 0.8710

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    0.8635

  • Take Profit

    0.8660

  • Stop Loss

    0.8600

  • Key Levels

    0.8593, 0.8610, 0.8635, 0.8710