Market NewsTechnical Analysis

EUR/GBP: Ranging Hard for a Stronger Breakout

EUR/GBP Multi-Week High
  • EUR/GBP trades above the SMA 30 on the h4 chart.
  • The pair has found resistance at 0.85700.
  • The H1 chart trades within an equidistant channel.
  • Intraday minor charts have been choppy.
EUR/GBP H4 Chart
EUR/GBP H4 Chart

EUR/GBP – Technical Analysis- H4 Chart

The chart shows that the price has been ranging within the simple moving average 30 and the horizontal resistance at 0.85700. Thus, the pair’s movement has been sluggish recently. The buyers may keep their eyes on the pair to go long upon having a bullish breakout at the horizontal resistance. In that case, the price may find its resistance around 0.86185.

On the other hand, if the price breaches the SMA 30’s support, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern to go short in the pair. In that case, it may find its support around 0.85000.

EUR/GBP H1 Chart
EUR/GBP H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been ranging within an equidistant channel. At the last rejection, it moved towards the South with a good momentum. However, it has found its support around the channel’s support and headed towards the North again. As of writing, the pair is having a bearish correction again. The buyers may wait for the chart to produce a bullish reversal signal at the value areas to go long in the pair.

On the contrary, the sellers may wait for the price to reach at the channel’s resistance and produce a bearish signal to go short in the pair. Alternatively, a bearish breakout at the channel’s support may generate good bearish momentum as well.

Considering both charts, the H1 and the H4 charts ranging levels’ supports and resistances are very similar. Thus, the next breakout is going to be a crucial one.

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

Contact and follow Tareq on Twitter: @tareqfpn

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