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. 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 H4 chart here.
On the H4 chart, we had a strong resistance zone and the price which is moving higher has currently broken above this zone and is holding above it, we may consider this as evidence of bullish pressure. After the breakout, this strong resistance zone is acting as a strong support zone for us. Also, the price which is moving higher has broken above the last high at 0.87873 and has created higher highs based on the MACD indicator which is a sign of gaining momentum towards the bullish side. In addition to this, based on the Stochastic Oscillator we could see that the price is nearing the extreme, which we may consider as yet another evidence favoring the bulls. Also, currently there are no signs opposing this short term bullish view. 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 short term bullish view.
On the H1 chart, currently, it looks like a pullback is happening with the price creating a bullish hidden divergence that has formed between the first low that has formed at 0.86905 and the second low that has formed at 0.88523 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence favoring this short term bullish view. In addition to this, currently it looks like a correction is happening in the form of potential double wave to the downside. Also, while measuring the first wave of this correction we have two key support zones that has formed. The first key support zone is formed by the 61.8%(0.87732) Fibonacci expansion level of the first wave and the second key support zone is formed by the 100%(0.86112) Fibonacci expansion level of the first wave. Until these two key support zones (marked in blue) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further.
EURGBP H4(4 Hours) Chart Analysis
EURGBP H1(1 Hour) Chart Analysis
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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
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