- EUR/GBP has had multiple bounces at a horizontal support.
- The pair made a breakout at the neckline of a double bottom.
- The H1 chart looks choppy; may get bullish later.
- Intraday minor charts are yet to find their direction.
EUR/GBP – Technical Analysis- H4 chart
The chart shows that the price had multiple bounces at 0.85500. At the last bounce, it produced a bullish inside bar. However, it has continued its bullish journey after having a bearish correction. On its way, it made a breakout at the level of 0.85870. This may be considered as a neckline breakout. As of writing, the pair trades above the breakout level. A bullish reversal candle may push the price towards the North. The price may find its resistance around 0.86500.
On the contrary, the sellers must wait for the price to produce a bearish reversal pattern at the value areas. If the price makes a bearish breakout at the swing low, it may get bearish again as well.
Price Action Analysis- H1 Chart
The chart shows that the price has been up trending by obeying a trend line. At the las bounce, it produced a bullish inside bar and headed towards the North in a hurry. On its way, it made a breakout at 0.85850. The price then made a bearish correction and found its support at the flipped level. The buyers may keep their eyes to go long from this zone upon having bullish reversal signal. The price may find its next resistance around 0.86000. A breakout above the level may push it towards the North further. In that case, it may find its resistance around 0.86300.
The sellers, on the other hand, may wait for the price to make a bearish move or make a breakout at the trend line to find short opportunities. As things stand, it may take time. Meanwhile, the buyers may dominate in the pair and push it towards the North for a long journey.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn