EUR/GBP: It Is All Quiet in the South, What is Next?

• The pair consolidates around last week’s lower low
• Sellers may keep an eye to go short on a bearish reversal candle
• Intraday price action has been choppy
• The price may get slightly bullish on minor time frames

EUR/GBP: The Bear Makes another Breakout

The pair has been bearish on the H4 chart for a while. Last week, the price had a bounce at 0.85215 and made a bullish correction. It had a rejection at Simple Moving Average 30. Upon producing a bearish inside bar, the pair headed towards the South again. On its way, it made a bearish breakout at 0.85215. This is a crucial horizontal level since it is the last week’s lower low. As of writing, the pair trades below the breakout level. A bearish reversal candle closing below today’s lower low may attract the sellers to go short in the pair and drive it towards 0.84650. If the price goes back within the breakout level, the pair may get choppy on the H4 chart.

The H1 Chart Consolidates and Makes Traders Wait

The H1 chart shows that the price consolidates around 0.85215 for a while. Traders are to wait to find its next direction. A bullish breakout above 0.85215 may push the price towards the North. The price may find its next resistance around 0.85350. On the downside, if the price produces a bearish reversal pattern at the consolidation resistance, the sellers may drive the price towards the South with good momentum. The price may find its next support around 0.84900. Intraday support and resistance level suggest that the price has more space towards the South to travel. Moreover, major time frames favors the Bear as well. Thus, we may see a bearish move on the H1 chart.

The Bear has been dominating on the H4 chart. The pair trades below last week’s lower low. These two factors may make the pair remain bearish on the H4 chart. The H1 chart does not show its direction today. However, major and minor chart integration suggests that the Bear may make a move on the H1 chart today.

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

Contact and follow Tareq on Twitter: @tareqfpn