Current Price Action: The EUR/GBP pair is trading around 0.84722, near the pivot line at 0.84915.
Key Observations:
1. Primary Support and Resistance Levels:
Primary Support Line (Monthly): 0.83977
Primary Support Line (Yearly): 0.83393
Resistance Line: 0.85728
2. Supply Zone: - A sensitive decision area characterized by high volatility is identified around 0.85204 to 0.85394.
3. Support and Resistance Areas:
Secondary Support Area: Around 0.84265
Resistance Area: Around 0.84915 to 0.85204
Scenarios: Bullish Scenario:
Breakout Above Pivot Line: If the price can break and sustain above the pivot line at 0.84915, it could aim for the resistance area around 0.85204. A further breakout from this level could see the price move towards the supply zone and potentially higher towards the resistance line at 0.85728.
Support from Rising Trend Line: The ascending trend line providing support suggests continued bullish momentum if it holds, potentially pushing the price higher.
Bearish Scenario:Failure at Pivot Line: If the price fails to break above the pivot line at 0.84915, it could retreat towards the secondary support area around 0.84265. Downside Targets: Sustained bearish pressure could push the price further down to the primary support lines at 0.83977 and 0.83393.
Today's Expected Trading Range: - The anticipated trading range for today is between the support level at 0.84265 and the resistance level at 0.85204.
Pivot Line: 0.84915 Resistance Levels: 0.85204, 0.85394, 0.85728 Support Levels: 0.84655, 0.84576, 0.84265Summary: - The EUR/GBP pair is currently at a critical juncture near the pivot line. A breakout above this level could signal a bullish continuation towards higher resistance levels, while failure to hold this level could see a decline towards key support areas. The next week's direction will be heavily influenced by the price action around the pivot line and the supply zone.
Direction for the Next Week:
Bullish Direction: Likely if the price breaks and sustains above 0.84915 and moves past 0.85204, targeting 0.85728.
Bearish Direction: Possible if the price fails to break the pivot line and drops below the secondary support area at 0.84265, targeting 0.83977 and potentially lower to 0.83393.
------There is also...Analysis Based on Volume Order Book (Expo) for EUR/GBP (4H Chart) https://www.tradingview.com/x/HdUMLgjV/ The Volume Order Book (Expo) on the EUR/GBP 4H chart provides insights into the liquidity and potential price movement based on the distribution of orders. Here's a detailed analysis:
Key Observations:2.High Volume at 0.84915:
There is a significant volume of 11.458M at the price level of 0.84915, which acts as a strong pivot point. This indicates that a lot of trading activity and interest is concentrated at this level.
2.Volume Clusters:
Above Current Price: There are notable volumes at 0.85204 (5.866M), 0.85394 (4.434M), and 0.85728 (5.857M). These levels act as resistance where selling pressure might be strong.
Below Current Price: There are significant volumes at 0.84655 (3.426M), 0.84576 (2.918M), and 0.84265 (2.647M). These levels act as support where buying interest is likely to be strong.
Directional Bias: Bullish Indicators:
Pivot Line Strength: The large volume at 0.84915 suggests that if the price can break and sustain above this level, it may indicate strong bullish momentum.
Support Levels: The accumulation of buy orders below the current price indicates strong support around 0.84655 and 0.84265, which can provide a solid base for upward movement.
Bearish Indicators:
Resistance Levels: The substantial sell orders above the current price at 0.85204 and 0.85728 suggest that the price may face significant resistance, potentially limiting the upside.