Hi Traders! EURGBP forecast follow up and update is here. On January 25th I shared this “EURGBP Forecast And Technical Analysis” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
My Idea
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 H4(4 Hours) Chart Current Scenario
In this pair based on the above-mentioned analysis, until the strong support zone holds my short term view was bullish and I was expecting the price to move higher further after pullbacks. The price which was moving lower provided a deeper move down and reached the strong support zone again, which is a contradictory sign for the bullish view. My current view on this pair is neutral.
Even though we had facts supporting the bullish view here, on the H4 chart, after the bullish convergence as per the book scenario we may expect corrections to happen and then further continuation higher. Generally, the correction might happen in the form of double wave down or in the form of range. Here, after the bullish convergence the price didn’t create a double wave or a range correction. Alternatively it moved down in a straight move and directly reached the strong support zone again. We may consider this as a fact provided by the market opposing the bullish view and also there we no bullish evidences as well. So my current view on this pair is neutral.
So traders, when it comes to trading, there are various important factors that we need to pay attention to, just because we have a good setup doesn’t mean that we can enter the trade randomly and it will pay us huge profits. First of all, we need to validate the entry and we should have a perfect entry plan to get into the trade which is a key factor when it comes to trading. This EURGBP forecast is yet another good example of this scenario.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
