- EUR/GBP trades below the simple moving average 30.
- The pair approaches a massive support.
- The H1 chart looks bearish but may make correction.
- Intraday minor chart may make some bullish moves.
EUR/GBP- Technical Analysis-H4 Chart
The chart shows that the price made a bearish move upon finding its resistance around 0.86900. It has been traded below the simple moving average 30. However, it seems to have found its support around 0.86365. The price reacted at this level several times. Thus, the sellers may wait for the price to go beyond the level to go short in the pair. The price may find its next support around 0.86000.
On the upside, if the chart produces a bullish reversal pattern at the support level, the buyers may go long above the SMA 30. The price may find its resistance around 0.87000.
Price Action Analysis- H1 Chart
The chart shows that the price made a strong bearish move by obeying a trend line. It had a bounce at 0.86400. As of writing, the price seems to be making a bullish correction. Sellers may be waiting for the price to go around the trendline’s resistance and produce a bearish reversal pattern to go short in the pair again.
However, the pair may find its horizontal resistance around 0.86600. If that level works as a resistance, the sellers may go short from there upon having a good bearish signal. The price may find its resistance again around 0.86400. A breakout below that level may generate more bearish momentum and make a new lower low.
Both charts slightly favour the sellers. However, the sellers must wait to sell the pair from the value areas. Let us wait and see what price action does at those resistance levels.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn