- EUR/GBP has been bearish on the H4 chart.
- The pair is traded around a horizontal support.
- The H1 chart may make a bullish correction.
- Intraday minor charts have been bullish.
EUR/GBP – Technical Analysis- H4 chart
The chart shows that upon finding its horizontal resistance around 087600, it made a bearish move. On its way, it has breached the simple moving average 30 and has continued its move towards the South. As expected, the level of 0.87000 holds the price, where the price reacted earlier several times. The sellers may wait for the chart to make a breakout at the level and go short. Before making a breakout here, it may consolidate. A breakout at the level may drive the price towards 0.86650.
On the other hand, the buyers may not find long opportunities based on this chart with lucrative risk-reward. Thus, they must wait for the chart to produce a strong bullish move or a bullish reversal pattern such as double bottom around marked the horizontal support.
Price Action Analysis- H1 Chart
The chart shows that the price has been down trending by obeying a trend line. The sellers may keep their eyes on the pair to go short from the value areas. Since it has been traded around a 0.87000 for quite a while, it may make a bullish correction. The level of 0.87245 looks good to work as a resistance. If the price finds its resistance at the trend line’s resistance too along with horizontal resistance, it would be a confluence level of resistance. It may generate good bearish momentum and drive the price towards the downside further. The price may find its next support around 0.86900.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn