Market NewsTechnical Analysis

EUR/GBP: Does Bear Head towards New Low?

  • EUR/GBP has been bearish on the H4 chart with the resistance of the SMA 30.
  • The pair has found its resistance at a flipped level of 0.85165.
  • The H1 chart looks choppy trading around yesterday’s swing low.
  • Intraday minor charts have been bearish.
EUR/GBP H4 Chart
EUR/GBP H4 Chart

EUR/GBP – Technical Analysis- H4 Chart

The chart shows that it produced a bearish engulfing candle and breached a significant level 0.85165. It consequently confirmed the breakout. The sellers may wait for the chart to produce a bearish reversal signal to go short in the pair. The price may find its next support around 0.84265.

Notably, the simple moving average 30 has been working as a resistance. Thus, the pair may attract more sellers to look for short opportunities. At the end, it may create good bearish momentum.

On the contrary, if the price gets bullish and ends up making a breakout at the SMA 30’s resistance, the pair may head towards the North and find its next resistance around 0.85700.

EUR/GBP H1 Chart
EUR/GBP H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been roaming around yesterday’s low at 0.85000. Being a round number, the level may play a very vital role. Since the price has been bearish biased, the sellers will be eagerly waiting for a breakout here to look for short opportunities. It may find its next support around 0.84500.

However, the buyers may wait for their opportunities here as well. The price has had several bounces. Thus, a bullish reversal signal may push the price towards the North. In that case, it may find its next resistance around 0.85150.

Considering both charts, it seems that the bear has an upper hand here. However, the level of 0.85000 may change the equation based on the price action around it on the H1 chart.

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

Contact and follow Tareq on Twitter: @tareqfpn

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