Market NewsTechnical Analysis

EUR/GBP: SMA’s Support and Horizontal Resistance Are in Play

Euro ECB
  • EUR/GBP has had its second rejection at the swing high on the H4 chart.
  • The SMA 30 has been working as a support.
  • The H1 chart is yet to find its direction.
  • Intraday minor charts were bearish in Tokyo session.
EUR/GBP H4 chart
EUR/GBP H4 chart

EUR/GBP – Technical Analysis- H4 chart

The chart shows that the price made a bullish move with moderate pace. On its way, it had a rejection at 0.86850 earlier. The price has found its support at the simple moving average 30 and produced a bullish engulfing candle. However, it has had its second rejection at the same level again. Thus, the buyers are waiting for the price to make a breach at the horizontal support to go long in the pair. A breakout may push the price towards the North. It may find its next resistance around 0.87500.

On the downside, if the price breaches the SMA 30’s support, it may find its next support around 0.86250.

EUR/GBP H1 chart
EUR/GBP H1 chart

Price Action Analysis- H1 Chart

The chart shows that it has been obeying a bullish trend for quite a while. At the last bounce, it produced a bullish engulfing candle. However, it did not breach the last swing high. Thus, the sellers may keep their eyes on the pair to go short below if it breaches the trend line’s support. A breakout at the trend line may drive the price towards the South. It may find its next support around 0.86450.

However, if the price finds its support again at the trend line, it may head towards the North again and find its resistance at the level of 0.86850. This horizontal resistance looks strong. Thus, buyers may consider it on their trading management before making any trading decision based on this chart.

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

Contact and follow Tareq on Twitter: @tareqfpn

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