FX.co ★ Saim786 | EUR/GBP

EURGBP H4: Bullish Breakout Meets Key Resistance The EURGBP H4 chart shows a clear shift in short-term market structure from bearish pressure toward a stronger bullish phase. Price previously declined from the 0.8590–0.8595 region and formed a base around 0.8553–0.8560. After this accumulation area, buyers gradually regained control and eventually produced a strong impulsive move higher. The most important development is the large bullish displacement candle that pushed price from approximately 0.8567 toward 0.8598. This move broke above the recent consolidation structure and carried price above the visible moving averages. The green moving average has also turned sharply upward, while the red and blue averages are beginning to slope higher. This combination supports the current bullish momentum, although price is now approaching an important resistance zone. Around 0.85940–0.85950, price is currently consolidating. This area should be monitored closely because it has already acted as an important reaction level. Above it, the next significant resistance appears around 0.85985–0.86020, followed by the recent upper wick near 0.86055–0.86070. The long upper wick indicates that sellers were active at higher prices, so a clean breakout and H4 close above this region would provide stronger confirmation of continued upside. On the downside, 0.85915 is the first short-term support. A deeper retracement could target the 0.85845 area, which aligns with the recent bullish displacement and may act as a potential demand/retest zone. Below that, 0.85705–0.85740 becomes another important structural area. For a bullish continuation setup, traders can watch for a successful retest of 0.85915–0.85845 followed by bullish confirmation. Potential upside objectives are 0.85985, 0.86020, and 0.86055–0.86070. A protective stop should be positioned according to the chosen entry structure rather than placed randomly. If price repeatedly rejects 0.85950–0.86020 and breaks below 0.85915, the bullish momentum could temporarily weaken and a deeper retracement may develop.

Overall, the chart currently shows bullish momentum after a strong structural recovery, but price is entering resistance, making confirmation and risk management essential before any continuation trade.