EURGBP Technical Analysis And Forecast

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EURGBP Forecast Update And Follow Up

Hi Traders! EURGBP technical analysis and 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. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the daily chart here.

EURGBP D1(Daily) Chart Analysis – Strong Support Zone, Bullish Convergence, Downtrend Line Breakout, ADX Indicator

On the daily chart, the price reached a strong support zone, respected it and bounced higher from this zone. Also, it has created a bullish divergence that has formed between the first low formed at 0.85788 and the second low formed at 0.85467 based on the MACD indicator. The price then moved higher and broke above the last high at 0.88276 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. We may consider this as evidence of bullish pressure. Also, the price which is moving higher has broken above the most recent downtrend line which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidence supporting this bullish view.

 

EURGBP Technical Analysis And Forecast

 

 

EURGBP H4(4 Hours) Chart Analysis Bullish Trend Pattern, Two Strong Support Zones

On the H4 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, and higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening, also we had two strong resistance zones that have formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout, these strong resistance zones are acting as two strong support zones for us. So based on all this, until both these strong support zones shown in the image below (marked in blue) hold my view remains bullish here and I expect the price to move higher further.

 

EURGBP Technical Analysis And Forecast

 

Technical Analysis & Forecast Summary

EURGBP D1(Daily) Chart Analysis 

  • Strong Support Zone, Bullish Convergence, Downtrend Line Breakout, ADX Indicator

EURGBP H4(4 Hours) Chart Analysis

  • Bullish Trend Pattern, Two Strong Support Zones

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 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.

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If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Arvinth Akash
Home Trader Club Team.

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