Hi Traders! EURGBP technical analysis and short term forecast post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! In this pair we are going to perform the top – down analysis in order to find possible trading opportunities. Let’s start our analysis now from the highest timeframe which will be the daily chart here.
EURGBP D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence, RSI Indicator, Parabolic Sar
Looking at the daily chart, we could see that the price which was moving lower, reached a key support zone that has formed based on the 100%(0.84965) Fibonacci expansion level of the first wave. The price respected this key support zone, and is currently bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed at 0.85481 and the second low that has formed at 0.84973 based on the MACD indicator which we may consider as evidence of bullish pressure. We also have this bullish divergence on the RSI indicator as well, which we may consider as yet another evidence of bullish pressure. Also, currently, there are no signs opposing this bullish view and in addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. So based on all this, my short-term view is bullish here and we may now move down to lower timeframe and look for evidences supporting this bullish view.
EURGBP H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Higher Highs, No Opposite Signs
On the H4 chart, we have a strong bullish momentum and based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward-moving market conditions so it basically reflects a bullish environment. In addition to this, we could see that the price which is moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. In addition to this, currently there are no signs opposing this bullish view here as well. So everything looks good here for the bulls and until the strong support zone (marked in green) shown in the image below holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
EURGBP D1(Daily) Chart Analysis
- Key Support Zone, Bullish Divergence, RSI Indicator, Parabolic Sar
EURGBP H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Higher Highs, No Opposite Signs
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Home Trader Club Team
