FX.co ★ EUR/GBP

Technical Analysis: EUR/GBP H1 Chart The EUR/GBP H1 chart illustrates a overall bearish momentum followed by a localized bullish pull-back and consolidation setup near key price levels. Market Structure and Price Action Following a sharp sell-off from above the 0.8600 level down to a low near 0.8566, the pair encountered a period of price absorption. Buyers stepped in to defend the swing low, pushing the price upward into a short-term correction phase. Current price action trades around 0.85812, testing immediate horizontal resistance situated around 0.85822 to 0.85835. The series of smaller bullish candles recovering from 0.8566 demonstrates steady, controlled buying momentum rather than an aggressive impulsive surge. However, price remains below major declining dynamic moving averages, which continue to signal strong overhead supply pressure on higher timeframes. Indicator Analysis Moving Averages: The dynamic moving averages overhead (red, blue, and white) are sloped downward and stacked in classic bearish alignment. They hover in the 0.8588 to 0.8595 region, offering a major confluence of dynamic resistance for any sustained bullish attempt. Relative Strength Index (RSI 14): The RSI indicator reads 46.27, rising smoothly from oversold territory. This neutral value suggests that while immediate downside selling momentum has cooled, the bulls have yet to regain control of the dominant trend. Volume: Volume spikes were prominently observed during the initial sell-off and the bottoming process near 0.8566. Recent volume during the retracement phase remains relatively subdued (361 units), indicating moderate conviction from buyers. Trading Outlook and Scenario Planning Bearish Continuation: A failure to break above the immediate resistance level at 0.85822–0.85835, combined with renewed selling volume, would likely drive the price back down toward the major support zone at 0.8566. A break below 0.8566 opens path toward 0.8550. Bullish Reversal: If buyers manage a clean hourly close above 0.85835 with expanding volume, the market could push higher to retest the moving average cluster around 0.8590 to 0.8595. Clear rejection at these dynamic levels offers high-probability short setups inline with the higher-timeframe trend.

Good morning, Sajidctn, I hope your trading activities and activities are going smoothly today. I'd like to respond to the analysis regarding the EURGBP currency pair. Looking at the current price movement, I see buyers providing a boost again after a previous correction. The price managed to rise to the 0.8579 area after briefly touching the middle Bollinger Band, which I used as dynamic support. Technically, the price is still holding above the 50 Exponential Moving Average. This condition indicates that the short-term movement structure remains bullish, despite previous downward pressure. As long as the price can stay above the 50 EMA and does not break through the important support area again, the opportunity for buyers to continue the rally is still quite open. Furthermore, considering the Bollinger Band direction, which is still pointing upwards, this condition further reinforces the impression that the current trend is still positive. I also pay attention to the MACD indicator, where the histogram is starting to strengthen again and is above the signal line and still in the positive area, or above the zero line. The combination of these indicators suggests that buyer momentum remains quite dominant over sellers. If the rally continues, my next focus will be on the previous high around 0.8600. This area is quite important because it previously served as a supply area that was able to hold back price increases. If the price manages to reach this area and breakout with strong momentum, the next move could potentially lead to resistance around 0.8669. Referring to the price's position relative to the 50-day moving average (EMA), the direction of the Bollinger Bands, and the MACD condition, I still see EURGBP in a bullish trend. Therefore, for today's trading plan, I'm considering a buy scenario while still paying attention to risk management. My plan is to look for buy opportunities around 0.8570, with a stop-loss below the support area of 0.8540. My first profit target is set at around 0.8630, while the second target is in the 0.8660 area. Of course, these levels will still need to be adjusted based on price developments and market momentum. So, that's my view on EURGBP for today, sis. As long as the price remains above the 50-day moving average (EMA) and key support remains intact, I see upside potential. However, it's important to monitor the price's reaction as it approaches the supply area, as that's where sellers could potentially re-apply pressure.