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, RSI Indicator
On the weekly chart, the price which is moving lower has reached a key support zone formed by the 100%(0.84540) Fibonacci expansion level of the first wave. The price respected this key 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 0.84026 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, we have this bullish divergence on the RSI indicator as well, which we may consider 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 evidences supporting this bullish view.
EURGBP H4(4 Hours) Chart Analysis – Heiken Ashi Candles, Higher Highs, Bullish Trend Pattern, Strong Support Zones
On the H4 chart, 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. Also, the price which was moving higher has broken above the last high at 0.85135 thus creating higher highs based on the MACD indicator, which we may consider as another evidence of bullish pressure. Also, we could see that the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as yet another 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. We also had two strong resistance zones that has 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. Until both these strong support zones shown in the image below holds my view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
EURGBP W1(Weekly) Chart Analysis
- Key Support Zone, Bullish Divergence, RSI Indicator
EURGBP H4(4 Hours) Chart Analysis
- Heiken Ashi Candles, Higher Highs, Bullish Trend Pattern, 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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
