Hi Traders! EURGBP forecast and technical analysis 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 Traders Academy 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 – Bullish Convergence, Parabolic Sar
On the daily chart we have a bullish divergence that has formed between the first low that has formed at 0.85327 and the second low that has formed at 0.84714 based on the MACD indicator. Then the price moved higher and broke above the high at 0.86445 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Also based on the Parabolic Sar we could see that the dots are below the price which we may consider as another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
EURGBP H4(4 Hours) Chart Analysis – Bullish Rally, Heiken Ashi Candles, Parabolic Sar, Strong Support Zone
On the H4 chart, we have a bullish rally and it looks like this bullish rally is about to continue itself as there are no signs that show this bullish trend is over yet. So until we get any opposite signs my view remains bullish here. In addition to this, 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 based on the Parabolic Sar we could see that the dots are below the price here as well which we may consider as another evidence of bullish pressure. We also had a strong resistance zone that had formed which the price has broken above and is currently holding above this zone, we may consider this as yet another evidence of bullish pressure. Currently this strong resistance zone is acting as a strong support zone for us. Until this strong support zone holds my view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
EURGBP D1(Daily) Chart Analysis
- Bullish Convergence, Parabolic Sar
EURGBP H4(4 Hours) Chart Analysis
- Bullish Rally, Heiken Ashi Candles, Parabolic Sar Strong Support Zone
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