In our previous Liteforex analysis, we were looking for the break of resistance to jump into the possible bullish rally, The price moves up twice but fails to break the resistance and reverse back.
Today I am sharing the possible alternate scenario if the price couldn’t break the resistance. Please go through the weekly and 4-Hour analysis written below.
Weekly EURGBP Technical Analysis
The chart is forming the descending channel in a weekly time frame and rejecting twice from the resistance indicating the possible bearish move ahead. bullish movement becomes an alternative thought after the resistance rejection couple of time.
Current market price is 0.8810 and if the price moves lower and break below 0.87250, then the bearish movement may confirm and the target could b 0.8500 maximum. If price moves up, breaks and close above the resistance level mentioned in the chart below, it will be the clear indication for the bullish move and the target could be 0.9000.
I have mentioned both targets level with the invalidation points in the chart below.
Weekly EURGBP Technical Chart
EURGBP 4-Hour Technical Analysis Forecast
We love to share 4-Hour chart because it gives us earliest signal for possible next price direction. The 4-Hour chart confirms for us the clear resistance rejection area, the price touches the resistance level many times but fails to break and reverse back.
EURGBP is also moving in a rising support direction which is making a higher low pattern in a 4-Hour chart. As long as the price is bouncing from the support and rejecting from the resistance level, we will stay neutral and wait for the break of these levels.
If price break and close above the resistance in 4-Hour time frame, this will be the earliest indication for bullish movement and the target may b 0.9000.
If price break and close below the support level in 4-Hour chart, we may go for the bearish entry for the target 0.85000
Please have a look at 4-Hour technical EURGBP chart below for the trade idea
4-Hour EURGBP Technical Chart
EUR GBP SUPPORT & RESISTANCE LEVELS
Watching Area Resistance Zone : 0.88450
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