Hi Traders! EURGBP technical analysis and 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 weekly chart here.
On the weekly chart, the price which is moving lower has reached a strong support zone. The price respected this strong support zone and is currently bouncing higher from this zone. We also had a bullish divergence that has formed between the first low that has formed at 0.84714 and the second low that has formed at 0.82025 based on the MACD indicator. In addition to this, we have this bullish divergence on the RSI indicator as well, we may consider these as evidences of bullish pressure. Also, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. Also, currently there are no signs opposing this bullish view. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
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 flat correction is happening in the form of a range and the price which is moving lower has reached a key support zone. This key support zone is formed by the 100%(0.83756) Fibonacci expansion level of the first wave, the 61.8%(0.83590) Fibonacci expansion level of the second wave and the bottom of the range. We also have a bullish hidden divergence that has formed between the first low that has formed at 0.82497 and the second low that has formed at 0.83824 based on the MACD indicator followed by a continuing bullish divergence, we may consider this as evidence of bullish pressure. Until the key support zone holds my view remains bullish here. A valid breakout above the top of the range would be the validation for this bullish view.
EURGBP W1(Weekly) Chart Analysis
EURGBP H4(4 Hours) 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 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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Arvinth Akash
Traders Academy Club Team
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