- EUR/GBP made a significant bearish breakout at the SMA 30’s support.
- The H4 chart shows that there is a strong support nearby.
- The H1 chart has been bearish having consolidation now.
- Intraday minor charts have been choppy.
EUR/GBP – Technical Analysis- H4 Chart
The chart shows that the price consolidated at 0.85700 and made a strong bearish move. It breached the support of the simple moving average 30 and consolidated around it. The sellers may keep their eyes on the pair to go short and drive it towards the South. However, the level of 0.85165 may hold the price as a support since the price had a bounce at this level earlier. A breakout below the level may generate more bearish momentum and head towards the downside further.
On the upside, if the swing low works as a support and ends up producing a bullish reversal pattern, the buyers may go long above the SMA 30. Thus, this chart may be observed by both the buyers and sellers.
Price Action Analysis- H1 Chart
The chart shows that the price after being bearish has found its support at 0.85340. It has been on consolidation around the level for a while. The sellers may be very keen to go short below the support. The price may find its next support around 0.85165.
On the other hand, if the price breaches the consolidation resistance, it may make a bullish correction. The correction may end up being a long one since there is no level evident, which may work as a flipped resistance.
Considering both charts, it seems that the pair is nicely poised to make a bearish move. The question is how the price reacts at the swing low level.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn