EUR/GBP: The Bull Holds the Key

• EUR/GBP is having a bearish correction on the H4 Chart.
• The pair may find its support at the SMA 30.
• The H1 chart looks bearish.
• Intraday minor charts’ price action have been bearish.

EUR/GBP-Technical Analysis- H4 Chart

The pair found its support at the Simple Moving Average 30 earlier. It produced a bullish engulfing candle and made a strong bullish move. As of writing, the pair has been having a bearish correction. The buyers may wait for the price to produce a bullish reversal pattern at the SMA 30 to go long on the pair. The pair may find its next resistance around 0.86650.

On the downside, if the chart makes a bearish breakout at the SMA 30, the seller may wait for the price to confirm the breakout followed by a bearish reversal pattern at the SMA 30 to go short in the pair. The pair may find its next support 0.85550.

Price Action Analysis-H1 Chart

The chart shows that after being very bullish on the H1 chart, it has been having a strong bearish correction. It has been obeying a bullish trend line as well. The buyers may wait for the price to produce a bullish reversal pattern at the trend line’s support to go long on the pair. The price may find its next resistance around 0.86285.

On the other hand, if the price makes a bearish breakout at the trend line’s support, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern at the trend line’s flipped resistance to offer them short entries. The price may find its next support around 0.85750.

The H4 and the H1 chart look good for the buyers. However, they must wait for the price to come at the value areas to offer them long entries by producing strong bullish reversal pattern.

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

Contact and follow Tareq on Twitter: @tareqfpn