30.04.202114:01 Forex Analysis & Reviews: Technical Analysis and Recommendations for EUR/GBP for April 30, 2021

On the last day of April and weekly trading, I propose to consider one of the most popular cross-rates euro/pound, where the main attention will be paid to the technical analysis of this trading instrument. It is clear that there is still some time before the end of the monthly and weekly trades, during which some changes may occur, but the general picture, I think, is already clear. Since this currency pair is not considered very often, I propose to consider the highest time frames in a slightly anticipatory mode.

Monthly

Looking at the monthly chart of EUR/GBP, I think few people have doubts that April will end with the growth of the single European currency against the pound sterling. This is eloquently indicated by a huge April bullish candle. With a high degree of probability, we can assume that the three-month downward trend for this cross has come to an end. The EUR/GBP bears stumbled at the most important psychological and technical level 0.8500, which they were not destined to break through. The chart clearly shows that attempts to pass the 0.8500 mark ended already at the level of 0.8470, from where the pair began to recover actively. Now about the further prospects of the cross, judging by the highest time frame. To maintain and strengthen bullish sentiments, it is necessary to go up from the Ichimoku cloud, while breaking through the blue 50 simple moving average, which is located at 0.8804. By the way, according to long-term observations of this cross, the 0.8800 level is very strong and difficult to pass, both up and down. For the bears to regain control over the pair, they need to send the quotes below 0.8500 and be sure to break through the strong support at 0.8470. Looking at the large April bullish candle, one can conclude that there has been a change in sentiment for EUR/GBP, which implies the subsequent growth of the instrument.

Weekly

In principle, the same conclusion can be reached by looking at the weekly chart. Although everything is less obvious here, and some technical nuances should be paid closer attention to. After the circled bearish "Harami" candlestick, which appeared after the big bullish candlestick, the bears on the cross set out to take the instrument back under their control again. However, the Tenkan line (red line) of the Ichimoku cloud and the technical level 0.8585 provided the pair with such strong support that it literally shot up. Although, it has not been possible to break through the very powerful resistance of sellers in the area of 0.8718 for a week in a row. Taking into account that the orange 200 exponential moving average passes a little higher, it is necessary to break not only the level of 0.8718 but also the level of 0.8739, where, in fact, the 200 EMA is located.

Only if this condition is met, can one expect a further rise, the nearest target of which will be the area of 0.8800-0.8810. If the bears find strength and break through the Tenkan line, as well as support at 0.8585, we can assume a retest of the strong technical zone, which now represents the key support of 0.8500-0.8470. Given the situation on the two highest time frames, I consider the main trading idea for EUR/GBP to be purchases that can be opened after fixing above 0.8740, on a rollback to this level. At lower prices, long positions can be tried near 0.8680. At the same time, the inability to overcome the resistance of sellers in the area of 0.8718-0.8739 and the appearance of bearish candle patterns on the daily or smaller time frames will be a signal for opening sales. With both positioning options, it is better not to set big goals, but to limit yourself to 30-50 points of profit.