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EURGBP D1(Daily) Chart Analysis – Strong Support Zone, Bullish Divergence, Downtrend Line Breakout, ADX Indicator
On the daily chart we have a strong support zone that has formed and the price which was moving lower, reached this support zone, respected it, and is currently moving higher. We also have a bullish divergence that has formed between the first low that has formed at 0.89372 and the second low that has formed at 0.88653 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, the price which is moving higher has broken above the most recent downtrend line which we may consider as another evidence of bullish pressure. In addition to this the ADX indicator gave a bullish signal 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. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
EURGBP H4(4 Hours) Chart Analysis – Bullish Trend Pattern, ADX Indicator, Strong Support Zone
On the H4 chart, the price which is moving higher has created a bullish trend pattern, which we may consider as evidence of bullish pressure. Also, the ADX indicator gave a bullish signal here as well 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. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. We also had a strong resistance zone that had formed which the price has broken above and currently, this strong resistance zone is acting as a strong support zone for us. So based on all this, my view is bullish here and I expect retraces to happen now towards this strong support zone and then the price to continue higher further.
Technical Analysis & Forecast Summary
EURGBP D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Divergence, Downtrend Line Breakout, ADX Indicator
EURGBP H4(4 Hours) Chart Analysis-
- Bullish Trend Pattern, ADX Indicator, Strong Support Zone
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