FX.co ★ EUR/GBP

Technical Analysis Summary: EURGBP Bearish Consolidation Based on the provided H1 (1-hour) chart for the Euro versus the British Pound (EURGBP.fx), the following is a technical summary of the price action and market structure covering the period from October 9th to October 13th. Chart Overview and Trend Context The chart displays a clear and persistent bearish trend. The currency pair has been in a sustained downtrend, characterized by lower highs and lower lows. Unlike a sharp crash, this decline exhibits a "stepped" structure, where periods of gradual selling are interrupted by brief, weak consolidation phases before the downward momentum resumes. The overall market sentiment remains distinctly negative. Key Price Levels and Price Action · The Downtrend: The pair started the period near the 0.84805 level and steadily declined. The price action is dominated by red (bearish) candles, indicating that sellers are consistently in control. · Failed Recoveries: There are several attempts at upward correction (e.g., around the middle of the chart with a cluster of green candles), but these rallies lack follow-through. They are quickly capped by resistance and overwhelmed by renewed selling pressure. · Current State: The price has recently broken below the 0.84480 support level. It is currently trading around 0.84470, hovering near the lows of the visible range. This suggests the bearish momentum is still active, and the market is searching for a solid support base. Technical Indicators Analysis · Moving Averages: The chart features three moving averages (blue, red, and green lines) which are providing strong bearish signals. · Bearish Alignment: The moving averages are in a "bearish alignment" (blue on top, red in the middle, green on the bottom) and are sloping downwards. This configuration is a classic indicator of a strong, established downtrend. · Dynamic Resistance: The moving averages are acting as dynamic resistance levels. Any attempt by the price to rally is consistently rejected near these lines, particularly the faster green moving average, preventing any meaningful recovery. · Resistance and Support: · Immediate Resistance: The red line at 0.84480 now acts as immediate overhead resistance. The price must reclaim this level to signal any short-term pause in the downtrend. · Major Resistance: The converging moving averages around the 0.84500-0.84530 zone represent a significant resistance ceiling. A break above this area would be required to suggest a potential trend reversal. · Immediate Support: The current low around 0.84430 serves as the immediate support level. A decisive break below this could accelerate the decline toward the 0.84405 level. Outlook The EURGBP is firmly in a bearish phase on the H1 timeframe. The persistent downtrend, coupled with the bearish alignment of the moving averages, indicates that the path of least resistance remains to the downside. Traders will be watching for a decisive break below the 0.84430 support to confirm further weakness, while a break above 0.84480 would be the first sign of a potential corrective bounce.

Hi, good afternoon, Saim786! Excellent analysis, I hope it goes according to plan. Here, I'd like to share my views and analysis on the EURGBP pair, which is currently clearly bearish. Here's my analysis.

Looking at the H4 chart, the downtrend is currently very dominant and well-maintained. The Bollinger Bands are pointing downward with a sharp slope, with the price below the middle band and continuing to cling to the lower band, indicating continued strong selling pressure. The price is also below the red 50-day moving average (EMA), which is currently around 0.84660 and has been steadily declining since late September. This decline was very impulsive, falling almost 120 pips from the upper supply level of 0.85665 on September 30th to the current level of 0.84449 in just a few days. The price has even broken through the psychological support level of 0.845, which previously served as resistance on October 6th, further indicating the continued validity of the downtrend. The MACD 12,24,8 indicator shows a value of -0.000774 with a signal line of -0.000861. The histogram remains negative, below the zero line, although it has begun to shorten. This means the MACD still indicates selling sentiment, but its volume isn't particularly high because selling action still appears weak and there hasn't been any new impulse following the significant decline in early October. The MACD line is moving above the signal line but is still slightly tangent and unable to rise above the zero line, so bearish momentum is still contained. This is normal after a prolonged decline; the market needs a short break before continuing its decline. The green supply area around 0.84790 to 0.84925, formed on October 4th, remains the closest resistance, holding back any upward movement. For my trading plan, I'm sticking to the trend, using the trend-following concept, to increase the probability of success. In a clearly bearish environment like this, looking for selling opportunities is much safer than going against the trend. The ideal entry point is around 0.84600, when the price pulls back up, approaching the 50-EMA and the supply area below. With a stop-loss placed at 0.85000 above the supply and above the 50-EMA, and a target level at 0.82600 as medium-term support, the risk-to-reward ratio is quite ideal. As long as the price remains below 0.84925, the main bias remains bearish and the selling opportunity remains wide open.