EUR/GBP: Ichimoku clouds 30 January 2019, 20:17

EUR/GBP: Ichimoku clouds

30 January 2019, 20:17

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	0.8740
Take Profit	0.8635
Stop Loss	0.8780
Key Levels	0.8705, 0.8755

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is crossing the price chart from below, current cloud is descending. The instrument is trading around lower border of the cloud. The closest support level is Tenkan-sen line (0.8705). The closest resistance level is the upper border of the cloud (0.8755).



On the daily chart Tenkan-sen line is below Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud has reversed from ascending to 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 (0.8635). The closest resistance level is Kijun-sen line (0.8855).

On the four-hour chart we can see the beginning of the trend reversal. On the daily chart we can see a correction of the downward movement. It is recommended to open short positions at current price with Take Profit at the level of previous minimum of Chikou Span line (0.8635) and Stop Loss at the level of Kijun-sen line (0.8780).