EUR/GBP has been bullish in the daily chart for the last few days. The pair produced a long bullish candle closing within a level where the price had a rejection earlier. Today’s intraday charts show that the price made a breakout at yesterday’s highest high. However, it did not make a bearish correction before making the breakout. Thus, the price may come back at the breakout level to determine its next direction. Let us now have a look at three vital charts.
Chart 1 EUR/GBP Daily Chart
The chart shows that the price produced a bullish engulfing candle and headed towards the North. Yesterday’s candle came out as a long bullish candle closing within the level of 0.90740. As of writing, the pair is trading above the level. However, it made an early breakout without having a bearish correction/consolidation. It may not attract buyers to go long. They may wait for the price to make a bearish correction/consolidation at intraday charts and make a breakout at today’s highest high to push the price towards the North further.
Chart 2 EUR/GBP H4 Chart
The chart shows that the price made a long bullish move. It consolidated at the level of 0.90430 and resumed its bullish move. The chart shows that the price has enough space to travel towards the North if it makes a breakout at today’s highest high. It may find its next resistance around the level of 0.91450. On the other hand, if the level of 0.90900 works as a level of resistance, the price may make a bearish correction. It may find its next support around 0.90430.
Chart 3 EUR/GBP H1 Chart
The chart shows that the price made a long bullish move. It made a breakout at yesterday’s highest high. Since the price did not make a bearish correction or had a bounce from a significant level of support, it may come back at the breakout level at 0.90730 to make a bearish correction. If the level works as a level of support and produces a bullish reversal candle, the buyers may go long above the level of 0.90990. The price may find its next resistance around the level of 0.91200. On the other hand, if the price makes a bearish breakout at 0.90730, the price may head towards the South and find its next support around 0.90000.
The daily, the H4, and the H1 chart look bullish biased. However, as far as the daily resistance level is concerned, the price may get bearish around the level. The next breakout is going to be the key. If the price breaches today’s highest high, it remains bullish. If it makes a bearish breakout at yesterday’s highest high, it may get bearish.