EURGBP Forecast And Technical Analysis

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EURGBP Forecast Update And Follow Up

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 weekly chart here.

EURGBP W1(Weekly) Chart Analysis – Key Support Zone, Bullish Divergence, Stochastic Oscillator

On the weekly chart, the price which is moving lower has reached a strong support zone. The price respected this strong support zone and is currently bouncing higher from this zone. We also had a bullish divergence that has formed between the first low that has formed at 0.84714 and the second low that has formed at 0.83051 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, based on the Stochastic Oscillator, we could see that the price has reached its extreme which we may consider as another evidence of bullish pressure. Also, currently there are no signs opposing this bullish view. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
EURGBP Forecast And Technical Analysis

 

 

EURGBP H4(4 Hours) Chart Analysis Higher Highs, Stochastic Oscillator, Strong Support Zones

On the H4 chart, we should note that the price which was in a bearish trend so far creating series of lower highs, lower lows has created higher highs for the first time in a while which we may consider as sign of a possible trend change. In addition to this, we have this higher highs on the MACD indicator as well, which we may consider as another evidence of bullish pressure. Also, based on the Stochastic Oscillator, we could see that the price has reached its extreme here as well which we may consider as yet another evidence of bullish pressure. So everything looks good here for the bulls and currently it looks like a pullback is happening.  Until the strong support zone (marked in red) holds I expect the price to move higher further after pullbacks.
EURGBP Forecast And Technical Analysis

Technical Analysis & Forecast Summary

EURGBP W1(Weekly) Chart Analysis 

  • Key Support Zone, Bullish Divergence, Stochastic Oscillator

EURGBP H4(4 Hours) Chart Analysis 

  • Higher Highs, Stochastic Oscillator, 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
Traders Academy Club Team

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