EUR/GBP: Bear Finds a Strong Blockade

• EUR/GBP has been bearish on the H4 chart.
• The pair trades around the swing low may end up making a breakout.
• The H1 chart has been bearish obeying a trend line.
• Intraday charts are yet to find their direction.

EUR/GBP – Technical Analysis- H4 Chart

The chart shows that the price upon finding its resistance at the simple moving average 30, produced an evening star. Then, it has been heading towards the South with decent momentum. As expected, the level of 0.85500 has been working as a support. The pair consolidates around the level for quite a while. A bearish breakout at the level may generate more momentum and drive the price towards the South. The price may find its support around 0.85000.

On the contrary, if the level produces a bullish reversal candle and ends up making a breakout at the SMA 30, the buyers may look to go long in the pair upon having breakout confirmation. The price may make a long bullish move by initially finding its resistance around 0.86150.

Price Action Analysis- H1 Chart

The chart shows that the price has been bearish by obeying a trend line. At the last rejection, it produced a bearish engulfing candle and made a strong bearish move before finding its support around 0.85550. The price then made a bullish correction and continued its move towards the South. As of writing, the price still looks to go towards the downside since the trend line has been working as its resistance. A breakout below the swing low may generate strong bearish momentum and drive the price towards 0.85200.

For the buyers, if the price moves towards the North and makes a breakout at the trend line, it may then head towards the North. The price may find its resistance around 0.85800.

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

Contact and follow Tareq on Twitter: @tareqfpn