EUR/GBP has been bullish in the daily chart. The pair had a consolidation and produced a bullish engulfing candle yesterday. Thus, the buyers may look to go long in the pair above consolidation resistance. The H4 chart seems to be bullish. However, the H1 chart suggests that it may go either way. Let us now have a look at those three charts.
Chart 1 EUR/GBP Daily Chart
The chart shows that the price has been bullish and made a breakout at the level of 0.90210. It then consolidated around the level. Yesterday’s candle came out as a bearish engulfing candle. Thus, the bull may resume its journey if the price makes a breakout at the level of 0.90790. The price may head towards the North with stronger bullish momentum and find its next resistance around 0.95000. If today’s candle comes out as an inside bar, the buyers may still look to go long in the pair upon having another bullish reversal candle. On the contrary, if the chart produces a bearish candle closing below the level of 0.90210, the price may get choppy before finding its next route.
Chart 2 EUR/GBP H4 Chart
The chart shows that the price produced a bullish engulfing candle at a level where it had several bounces. The level worked as a level of resistance earlier as well. Thus, the buyers may be very interested to go long in the pair above the level of 0.90785. The price may find its next resistance around 0.91790. The sellers, on the other hand, are going to wait for the price to produce a bearish reversal candle at the level of 0.90785. The price may get more bearish if it breaches the level of 0.90180. It may find its next support around 0.89475.
Chart 3 EUR/GBP H1 Chart
The price shows that the price had a bounce at the level of 0.90200. It made a bullish move and found had a rejection around 0.90700. Since then, the price has been choppy. A bullish breakout at the level of 0.90780 may attract the buyers to go long in the pair and push the price towards the North. It may find its next resistance around 0.91450. On the other hand, if the price makes a bearish breakout at consolidation support, it may head towards the level of 0.90200.
The H1 chart is bearish biased, but it may go either way. However, the H4 and the daily charts are very bullish. Thus, the pair may end up producing another bullish candle in the daily chart. If the candle comes out as a bullish Marubozu candle, the pair may remain bullish for a while in the coming days.