EUR/GBP: A Significant Breakout at a Bullish Trend Line

• EUR/GBP has made a significant bearish breakout on the H4 chart.
• The pair trades below the simple moving average 30.
• The H1 chart has been choppy.
• Intraday minor charts may make some bullish move.

EUR/GBP- Technical Analysis-H4 Chart

The chart shows that the price was up trending by obeying a bullish trend line. It had several bounces, so traders are to consider the trend line. The pair then found its resistance around 0.87500 and produced a bearish inside bar. The pair then produced a long bearish candle breaching the trend line’s support. As of writing, the pair trades below the trend line. Thus, the sellers may keep their eyes on the pair for price consolidation followed by a bearish reversal candle to go short in the pair. The price may find its support around 0.86650.

On the contrary, if the price goes back to the trend line’s support again, the buyers may come into play and push the price towards the North again. In that case, that would generate more bullish pressure.

Price Action Analysis- H1 Chart

The chart shows that the price made a strong bearish move and made a breakout at 0.87100. As of writing, the pair has been having consolidation around the breakout level. The sellers may wait for the chart to produce a bearish reversal candle followed by a price breach at the consolidation support to go short in the pair. The price may find its next support around 0.68800.

On the other hand, if the resistance level gets broken, the price may make a longer bearish correction. However, the pair may not get that bearish on the H1 chart soon. Thus, the sellers are to be very careful on making any selling decision based on the H1 chart.

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

Contact and follow Tareq on Twitter: @tareqfpn