EUR/GBP: Ichimoku clouds



Let's look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is approaching the price chart from below, current cloud is descending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. Borders of the cloud serve as the closest support (0.8828) and resistance (0.8880) levels




On the daily chart Tenkan-sen line is below Kijun-sen, both lines are directed downwards. 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 (0.8810). The closest resistance level is Tenkan-sen line (0.8880).


It is recommended to open long positions at current price with Take Profit at the level of previous maximum of Chikou Span (0.8880) line and Stop Loss at the level of Kijun-sen line (0.8825).

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY

  • Entry Point

    0.8843

  • Take Profit

    0.8880

  • Stop Loss

    0.8825

  • Key Levels

    0.8786, 0.8805, 0.8826, 0.8840, 0.8855, 0.8870, 0.8880, 0.8897.