The chart represents the EUR/GBP currency pair on the 4-hour timeframe using Heikin Ashi candles. Here’s the analysis:
Observations:
1. Resistance Zone:
A strong resistance level is marked around 0.8327, indicating repeated price rejection at this zone (highlighted by orange circles).
2. Support Levels:
Two prominent blue lines represent key support levels:
First Support: 0.8260
Second Support: 0.8223 (Diamond Zone), which is the significant area of interest.
3. Diamond Pattern:
A "diamond zone" is identified as a potential key breakout/breakdown area. This structure often indicates an upcoming price move.
4. Trendlines:
A yellow trendline shows the recent downward momentum.
The price action suggests the possibility of lower highs and lower lows, implying bearish sentiment.
5. Projected Movement:
Blue arrows indicate a bearish outlook:
The first downward move targets the first support level.
If breached, the price may head toward the diamond zone (second support level).
Conclusion:
Bearish Bias: The chart suggests EUR/GBP may continue its bearish movement, especially if the resistance at 0.8327 holds strong.
Trading Strategy:
Entry: Look for confirmations (e.g., rejection candles or strong bearish momentum) near resistance for potential short positions.
Targets:
TP1: 0.8260
TP2: 0.8223 (diamond zone)
Stop Loss: Place it above 0.8330 to protect against invalidation of the bearish setup.
Monitor price action at key levels for confirmation.
Observations:
1. Resistance Zone:
A strong resistance level is marked around 0.8327, indicating repeated price rejection at this zone (highlighted by orange circles).
2. Support Levels:
Two prominent blue lines represent key support levels:
First Support: 0.8260
Second Support: 0.8223 (Diamond Zone), which is the significant area of interest.
3. Diamond Pattern:
A "diamond zone" is identified as a potential key breakout/breakdown area. This structure often indicates an upcoming price move.
4. Trendlines:
A yellow trendline shows the recent downward momentum.
The price action suggests the possibility of lower highs and lower lows, implying bearish sentiment.
5. Projected Movement:
Blue arrows indicate a bearish outlook:
The first downward move targets the first support level.
If breached, the price may head toward the diamond zone (second support level).
Conclusion:
Bearish Bias: The chart suggests EUR/GBP may continue its bearish movement, especially if the resistance at 0.8327 holds strong.
Trading Strategy:
Entry: Look for confirmations (e.g., rejection candles or strong bearish momentum) near resistance for potential short positions.
Targets:
TP1: 0.8260
TP2: 0.8223 (diamond zone)
Stop Loss: Place it above 0.8330 to protect against invalidation of the bearish setup.
Monitor price action at key levels for confirmation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.