On 20 November 2019 a possible bullish scenario was discussed. Sellers however entered the market and the scenario was invalidated. In the meantime, demand pressure continued building and another bullish scenario is possible.
The EUR/GBP currency pair, on the H4 time-frame, was in a downward move until the 18th of November when a lower bottom was recorded at 0.85219. Demand pressure then started increasing.
After the bottom at 0.85219 the price broke through the 15 and 34 Simple Moving Averages, the Momentum Oscillator broke the zero baseline into positive terrain and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. This confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 22nd of November at 0.86061. Currently sellers are trying to drive the price lower.
If the EUR/GBP breaks through the critical resistance level at 0.86061, then three possible price targets might be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 0.86061 and dragging it to a possible support level near the 34 Simple Moving Average at 0.85646, the following targets can be calculated. The first target was anticipated at 0.86318 (161 %). The second price target can be predicted at 0.86733 (261.8%) and the third and final target may be expected at 0.87404 (423.6%).
If the support level at 0.85646 is broken, the scenario is invalidated and must be re-evaluated.
As long as buyers maintain an positive attitude and demand overcomes supply, the outlook for the EUR/GBP currency pair on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
The EUR/GBP currency pair, on the H4 time-frame, was in a downward move until the 18th of November when a lower bottom was recorded at 0.85219. Demand pressure then started increasing.
After the bottom at 0.85219 the price broke through the 15 and 34 Simple Moving Averages, the Momentum Oscillator broke the zero baseline into positive terrain and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. This confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 22nd of November at 0.86061. Currently sellers are trying to drive the price lower.
If the EUR/GBP breaks through the critical resistance level at 0.86061, then three possible price targets might be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 0.86061 and dragging it to a possible support level near the 34 Simple Moving Average at 0.85646, the following targets can be calculated. The first target was anticipated at 0.86318 (161 %). The second price target can be predicted at 0.86733 (261.8%) and the third and final target may be expected at 0.87404 (423.6%).
If the support level at 0.85646 is broken, the scenario is invalidated and must be re-evaluated.
As long as buyers maintain an positive attitude and demand overcomes supply, the outlook for the EUR/GBP currency pair on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.