Hi Traders! EURGBP technical analysis and short term forecast 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 Home Trader Club Spoiler alert – free memberships are available! In this pair we are going to perform the top – down analysis in order to find possible trading opportunities. Let’s start our analysis now from the highest timeframe which will be the H4 chart here.
EURGBP H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Downtrend Line Breakout, Heikin Ashi Candles, ADX Indicator
On the H4 chart, 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 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 has happened in the form of double wave to the downside and the price which was moving lower respected a strong support zone and bounced higher from this zone. Also, the price which is moving higher has broken above the most recent downtrend line, we may consider these as other evidences of bullish pressure. Also, 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. 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. So based on all this, my short-term view is bullish here and we may now move down to lower timeframe and look for evidences supporting this bullish view.
EURGBP H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bullish Trend Pattern, Two Strong Support Zones
On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies here as well 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 here as well in the form of three higher highs, higher lows, we may consider this as 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, also we 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(marked in green) holds my short term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
EURGBP H4(4 Hours) Chart Analysis
- Bullish Trend Pattern, Downtrend Line Breakout, Heikin Ashi Candles, ADX Indicator
EURGBP H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Bullish Trend Pattern, Two Strong Support Zones
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