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EURGBP H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Key Support Zone, Parabolic Sar, ADX Indicator
On the H4 chart the price which was moving higher has created a bullish trend pattern that had completed itself, 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. We also had a strong resistance zone that had formed which the price has broken above and currently this strong resistance zone is acting as a strong support zone for us. While measuring the bullish trend pattern using the fibonacci retracement tool, we could see that the 38.2% fibonacci retracement level at 0.88738 and the 50% fibonacci retracement level at 0.88349 coincides exactly with the strong support zone which makes this area a key support zone for us. Also while looking at the Parabolic Sar we could see that the dots are below the price which we may consider as evidence of bullish pressure. In addition to this the ADX indicator gave a bullish signal 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 another evidence of bullish pressure. So until the key support zone (marked in green) holds my view remains bullish here.
Technical Analysis & Forecast Summary
EURGBP H4(4 Hours) Chart Analysis
- Bullish Trend Pattern, Key Support Zone, Parabolic Sar, ADX Indicator
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