EUR/GBP: Ichimoku clouds 16 May 2018, 21:34

EUR/GBP: Ichimoku clouds

16 May 2018, 21:34

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	0.8750
Take Profit	0.8685
Stop Loss	0.8780
Key Levels	0.8740, 0.8780

Let's look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span has crossed the price chart from above, current cloud is ascending. The instrument has broken down the cloud and slowed down its fall. One of the previous minimums of Chikou Span line is expected to be a support level (0.8740). The closest resistance level is Tenkan-sen line (0.8780).



On the daily chart Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is descending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (0.8730). The closest resistance level is Tenkan-sen line (0.8780).

On the both charts the instrument is still falling. It is recommended to open short positions at current price with Take Profit at the level of previous minimum of Chikou Span line (0.8685) and Stop Loss at the level of Kijun-sen line (0.8780).