EUR/GBP: The Last Swing Low is Under Spot Light

• EUR/GBP has been gradually heading towards the last swing low.
• The simple moving average 30 has been working as a resistance.
• The H1 chart looks choppy trading within a channel.
• Intraday minor charts have been bearish in Tokyo session.

EUR/GBP – Technical Analysis- H4 chart

The chart shows that the price headed towards the South with good momentum. It had a bounce at 0.85550 and made a bullish correction. The pair consolidated around a horizontal resistance for a while. Upon producing a bearish reversal candle, it has been heading towards the South again. As of writing, the pair is traded around the last swing low. A breakout below may generate more bearish momentum and drive the price towards 0.85000.

On the contrary, if the last swing low holds the price and push it towards the North, the buyers may wait for the price to make a breakout at the SMA 30’s resistance to go long in the pair. The price may find its resistance around 0.86300.

Price Action Analysis- H1 Chart

The chart shows that the price gets caught within a channel for a while. It has had multiple bounces and rejections. As of writing, the pair is traded around the channel’s support. A breakout below may drive the price towards the level of 0.85550. On the contrary, if the channel’s support pushes the price towards the North, it may find its resistance again at the channel’s resistance.

Considering the H1 chart, the pair may remain choppy since it does not have enough space to travel towards the South.

The last swing low holds the key here. A breakout below may make it interesting for the sellers. However, if it does not make a breakout, the pair may remain choppy for a while.

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

Contact and follow Tareq on Twitter: @tareqfpn