The EUR/GBP currency pair, on the H4 time-frame, was in an upward move until the 17th of April when a higher top was registered at 0.86812. Sellers briefly succeeded in halting buyers’ momentum but the bears could not completely break the bullish pressure. This was confirmed when the price could not convincingly break through the 15 and 34 Simple Moving Averages even though the Momentum Oscillator zero baseline was broken.
For the next four days neither demand nor supply pressure managed to dominate the market and the price ranged until a beautiful Hammer Candle was formed on the 23rd of April at 0.86361. Demand overwhelmed supply from there and a higher top was formed at 0.86823. This might prove to be a critical resistance level.
The bears are currently trying to counter the buying pressure but if the price of the EUR/GBP currency pair breaks through the critical resistance level at 0.86823, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible upward continuation at 0.86823 and dragging it to the bottom of the pullback at 0.86361, the following targets may be calculated. The first target can be anticipated at 0.87108 (161 %). The second price target can be projected at 0.87569 (261.8%) and the third and final target may be expected at 0.88316 (423.6%).
If the bottom at 0.86361 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for EUR/GBP currency pair on the H4 time-frame will remain bullish.
For the next four days neither demand nor supply pressure managed to dominate the market and the price ranged until a beautiful Hammer Candle was formed on the 23rd of April at 0.86361. Demand overwhelmed supply from there and a higher top was formed at 0.86823. This might prove to be a critical resistance level.
The bears are currently trying to counter the buying pressure but if the price of the EUR/GBP currency pair breaks through the critical resistance level at 0.86823, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible upward continuation at 0.86823 and dragging it to the bottom of the pullback at 0.86361, the following targets may be calculated. The first target can be anticipated at 0.87108 (161 %). The second price target can be projected at 0.87569 (261.8%) and the third and final target may be expected at 0.88316 (423.6%).
If the bottom at 0.86361 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for EUR/GBP currency pair on the H4 time-frame will remain bullish.