EUR/GBP: The Bear is Having a Feast

• The pair has been very bearish in the H4 chart
• The pair trades below a bullish trend line and SMA30
• The H1 finds its resistance at a flipped level
• Intraday traders may drive the pair towards the South

EUR/GBP the Bear is in Charge

The pair has been very bearish on the H4 chart. It made a breakout at a bullish trend line and confirmed the breakout. As expected, the sellers have been very keen to sell off the pair and drive it towards the South from value areas. As of writing, the price stays below Simple Moving Average 30. This might attract more sellers to look for short opportunities. The H4 chart shows that the price found its support around 0.85500. The price reacted at this level earlier. Thus, the pair may consolidate around the level for a while.

On the contrary, the buyers are to be very patient until the pair produces a strong bullish reversal pattern. A Double Bottom or a strong bullish move may change the scenario. As far as recent price action is concerned, it may take some time to happen.

The Price Gets Bearish from a Confluence Level

The H1 chart seems to be perfect for the sellers to go short in the pair. The pair has been bearish by obeying a trend line. At the third bounce, the pair produced a bearish Pin Bar and headed towards the South. This level is very vital. It is a confluence level where the price has found a horizontal resistance at 0.85900 as well. Intraday traders may be very keen to go short in the pair at its strength. The price may find its next support 0.85500.

On the upside, if the price heads towards the North and ends up making a breakout at the bearish trend line, intraday buyers may get opportunities to go long in the pair upon having breakout confirmation. It seems it is a long way to go. Meanwhile, it looks all set for the sellers.

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

Contact and follow Tareq on Twitter: @tareqfpn