Hi Traders! EURGBP short term 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. 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!
On the H4 chart, based on the Heikin Ashi candles we can see that, we had strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. In addition to this, the price which was 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 the correction is happening in the form of double wave down. We also have a bullish divergence that has formed between the first low that has formed at 0.85004 and the second low that has formed at 0.84857 based on the MACD indicator which we may consider as yet another evidence of bullish pressure. Also, we have two key support zones that has formed, the first key support zone is formed by the 61.8%(0.84922) Fibonacci expansion level of the first wave and the 38.2%(0.85157) – 50%(0.84898) Fibonacci retracement levels of the bullish trend pattern. The second key support zone is formed by the 100%(0.84546) Fibonacci expansion level of the first wave and the 61.8%(0.84640) Fibonacci retracement level of the bullish trend pattern. Until both these key support zones hold my short term view remains bullish here.
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term 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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
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