EUR/GBP: Bear Jumps Amid Bull’s Territory

• EUR/GBP H4 chart is having a bearish correction
• Simple Moving Average 30 holds the price as a support
• The H1 chart has produced a double top
• Intraday price action has been bearish

EUR/GBP-Technical Analysis- H4 chart

The pair has been bullish on the H4 chart. It found its horizontal support around 0.85150 and produced a bullish engulfing candle. It made a breakout at SMA30 with its next candle. Upon having a bearish correction, it made a strong bullish move. The H4 chart seems to have a rejection around 0.86080. The price consolidates around the resistance for a while. As of writing, the price has been heading towards the South to make a bearish correction. The chart shows that 0.85900 is a crucial level. If the price makes a bearish breakout, it may continue its bearish correction. However, a bullish reversal pattern at that level may attract the buyers to go long and push the price towards the North. The price may find its next resistance around 0.86500.

On the downside, sellers may wait for the price to make a bearish breakout at SMA 30 to look for short opportunities.

Price Action Analysis-H1 Chart

The H1 chart shows that the price after being bullish found its resistance around 0.86080. It produced a double top and made a breakout at the neckline. However, the bullish trend line still holds the price as a support. A bearish breakout at the trend line may attract the sellers to go short in the pair. The price may find its next support around 0.85650.

On the upside, if the chart produces a bullish reversal pattern at the trend line’s support, buyers may look to go long above last swing high at 0.86080. The price may find its next resistance around 0.86350.

The H4 chart still favors the bull. The H1 chart looks promising to make a bearish move. Nevertheless, as long as the trend line holds the price as a support on the H1 chart, the bull may show its strength on the H1 chart as well.

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

Contact and follow Tareq on Twitter: @tareqfpn