EUR/GBP: Bear Waits to Gain Its Strength

• EUR/GBP has been looking for its direction on the H4 chart.
• The pair trades below the simple moving average 30.
• The H1 chart looks bullish; trades around a resistance.
• Intraday minor charts have been bullish.

EUR/GBP – Technical Analysis- H4 chart

The chart shows that the price made a bearish move earlier. It found its horizontal support and produced a spinning top. It has been heading towards the North to make a bullish correction. As of writing, the pair trades around 0.87115. The level may work as a resistance since the price reacted at this level earlier. A bearish reversal pattern at this level may attract the sellers to go short. The price may find its support around 0.86650.

On the contrary, if the price breaches the level, the buyers may get on their toes to go long on the pair. A bullish reversal pattern at the flipped support may push the price towards 0.87350.

Price Action Analysis- H1 Chart

The chart shows that the price has been down trending by obeying a trend line. At the last rejection, it produced a bearish engulfing candle and headed towards the downside in a hurry. Upon finding its support, it has been making a bullish correction. The sellers may wait for the price to produce a bearish reversal pattern at the trend line’s resistance to go short in the pair. The price may find its next support around 0.86800.

On the contrary, if the price breaches the trend line’s resistance, the buyers may wait for the breakout confirmation followed by a bullish reversal to go long in the pair. The price may find its resistance 0.87250.

Considering both charts, it seems that the bear may get strong again and make a move towards the downside. The bull is to wait until it makes a breakout at one of those significant levels mentioned on the above charts.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn