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EURGBP H4(4 Hours) Chart Analysis – Range Breakout, Higher Highs, Heiken Ashi Candles, Bullish Trend Pattern, ADX Indicator, Strong Support Zones
On the H4 chart, the price which was moving inside a range has currently broken above the top of this range and is holding above it which we may consider as evidence of bullish pressure. Also, the price which is moving higher has created higher highs between the first high that has formed at 0.86179 and the second high that has formed at 0.86416 based on the MACD indicator which we may consider as another evidence of bullish pressure.
In addition to this, 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 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. In addition to this, the ADX indicator gave a bullish signal here 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 yet another evidence of bullish pressure. Also, we had two strong resistance zones and the price which was moving higher has broken above both these zones and is holding above them. Currently these two strong resistance zones are acting as two strong support zones for us. Until both these support zones hold my view remains bullish here and I expect the price to move higher further.
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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Vladimir Ribakov
Certified Financial Technician
