EURGBP, DAILY PRICE ACTION

MULTI-TIMEFRAME ANALYSIS

WEEKLY CHART

The price reacted so fast with rapid selling after hitting resitance R zone. Currently price is in a channel congestion marked by the red trendlines A and B.  This means we keep trading within the channel until we see a convincing break of the channel..

A break and close of weekly candle above A, may lead price to retest the previous resistance zone R around 0.92293.  Break close of weekly candle price below trendline B, may lead price to the previous strong support zone marked S around 0.84737.

The immediate reaction off the resistance zone, implies a strong bearish bias. This bias will be maintained if price in the channel keeps below the 21 Simple Moving Average in the chart above. 

But since anything can happen in the markets, keep the trading within in the channel and wait for price confirmation on the channel break either way.

Lets look at the channel clearly on the daily time frame:

DAILY CHART

 On the daily chart, we can clearly see the price action in the channel. The red trendlines A and B are same as those on the weekly chart.

So what we are seeing n the daily chart is price in a small channel too marked by blue trendlines a and b.

A break and close of daily candle above blue trendline a, may lead price to retest the immediate resistance marked by purple trendline T. Strong close above T can lead price high above into the ultimate weekly trendline resistance A.

Meanwhile, a close of daily candle below blue trendline b, may lead price to retest the immediate support zone marked by purple trendline H. The H zone is the same as the 21 Simple moving  average zone, this makes it quite a strong support zone. 

A strong close below H can lead price  into the strong weekly support zone marked by red trendline B.

Daily chart congestion indicates keeping lower timeframe trading on 4-hourly or hourly in the small daily channel marked by blue trendlines a and b, until we get a daily candle close above/below the channel.