EUR/GBP Trading Analysis
Hello, Traders!
Today, we’re analyzing the EUR/GBP currency pair. Let’s break down the market’s recent activity and key technical setups to watch.
Daily (D1) Time Frame Analysis
As shown in the chart, the market had been in a downtrend for quite some time. Afterward, the price experienced a pullback and reached a major resistance level.
Upon hitting this resistance:
- The market cleared liquidity above the level.
- It then remained in a range-bound state for the past seven days.
- Friday’s candle printed with strong selling momentum, indicating potential bearish sentiment moving forward.
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| daily timeframe |
H4 Time Frame Analysis
in the H4 time frame, a rising wedge pattern formed as the market approached a resistance level. Key observations:
- The price failed to break its resistance level.
- Instead, it broke out of the rising wedge pattern with strong bearish momentum.
This breakout could indicate the start of a downtrend. However, to confirm further downside movement, traders should look for:
- A retest of the broken wedge pattern.
- Continuation of selling momentum after the retest.
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| H4 timeframe |
Key Takeaway
The breakout of the rising wedge with strong momentum is a potential signal that the price may move lower from here. Monitor key levels, especially the retest zones, to confirm bearish continuation.
Trade wisely and use proper risk management. Happy trading!
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