Market NewsTechnical Analysis

EUR/GBP: Bull Makes a Correction Amid Bear’s Zone

  • EUR/GBP has been bearish on the H4 chart having a bullish correction.
  • The pair may find its resistance around 0.86150.
  • The H1 chart looks bullish.
  • Intraday minor charts have been bullish in the Tokyo session.
EUR/GBP H4 chart
EUR/GBP H4 chart

EUR/GBP – Technical Analysis- H4 Chart

The chart shows that the price has been making a bullish correction after being very bearish on the H4 chart. The simple moving average 30 has been working as a resistance. The sellers may wait for the chart to produce a bearish reversal pattern at the key area to go short in the pair. The level of 0.86150 may work as a resistance and drive the price towards the South. The price may find its next support around 0.85700.

However, the buyers may be eagerly waiting for the chart to make a breakout at the SMA 30’s resistance. If that happens, they may go long upon having bullish signal at the key areas. In that case, the price may change its direction and find its resistance around 0.86500.

EUR/GBP H1 chart
EUR/GBP H1 chart

Price Action Analysis- H1 Chart

The price has been gradually heading towards the North. The chart shows that the price reacted around 0.86150 several times. Traders may wait for the price to reach there and wait what it does. A bearish reversal pattern may attract the sellers to go short in the pair. The price may find its support at the swing low.

On the contrary, if the chart makes a bullish breakout at the resistance level, the buyers may look to go long in the pair upon having bullish signal. In that case, the price may find its resistance around 0.86400.

Since the H4 chart still has a strong resistance to play its part, so the pair is bearish biased. Nevertheless, a bullish breakout may change the scenario and push the price towards the upside.

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

Contact and follow Tareq on Twitter: @tareqfpn

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