EUR/GBP Daily Price Forecast – 29th April 2025

EUR/GBP Daily Price Forecast – 29th April 2025

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Trade Summary:

EURGBP
Sell Stop @ 0.84821
TP @ 0.84475
SL @ 0.85485

EUR/GBP Analysis (4-Hour Chart)

Overview

The EUR/GBP chart provided is a 4-hour timeframe, showing a clear bearish trend. The chart includes key levels for a Sell Stop order, Stop Loss (SL), and Take Profit (TP). Moving averages and candlestick patterns are also visible, providing additional insights into the market dynamics.

Key Observations

• Trend Analysis

  • The pair is in a downtrend, as evidenced by the lower highs and lower lows.

  • The price is trading below the moving averages (red, yellow, and green lines), which act as dynamic resistance levels.

• Moving Averages

  • The red line (likely a longer-term moving average) is above the price, confirming the bearish momentum.

  • The yellow and green lines (shorter-term moving averages) are also sloping downward, reinforcing the bearish sentiment.

• Sell Stop Order

  • A Sell Stop is placed at 0.84821, indicating an expectation of further downside if the price breaks below this level.

  • This level is slightly below the current price, suggesting a cautious approach to confirm the continuation of the bearish trend.

• Stop Loss (SL)

  • The Stop Loss is set at 0.85485, above the recent resistance level.

  • This placement provides a buffer in case of a temporary retracement, while still maintaining a favorable risk-to-reward ratio.

• Take Profit (TP)

  • The Take Profit is set at 0.84475, targeting a key support level.

  • This level aligns with previous price action, where the market found support in the past.

• Candlestick Patterns

  • Recent candlesticks show small-bodied candles, indicating reduced volatility and a potential buildup for a breakout.

  • The bearish candles dominate, reflecting selling pressure.

Technical Levels

• Resistance Levels:

  • Immediate resistance is near 0.85485 (Stop Loss level).

  • Additional resistance is at the moving averages, which may act as dynamic barriers.

• Support Levels:

  • Immediate support is at 0.84821 (Sell Stop level).

  • Further support is at 0.84475 (Take Profit level).

Trading Strategy

• Entry:

  • Enter a Sell Stop at 0.84821 to confirm the continuation of the bearish trend.

• Stop Loss:

  • Place the Stop Loss at 0.85485 to limit potential losses in case of a reversal.

• Take Profit:

  • Target 0.84475 for a favorable risk-to-reward ratio.

• Risk Management:

  • Ensure proper position sizing to manage risk effectively.

  • Monitor the price action closely for any signs of reversal or increased volatility.

Conclusion

The EUR/GBP pair is exhibiting strong bearish momentum, with the price trading below key moving averages and forming lower highs and lows. The Sell Stop at 0.84821, Stop Loss at 0.85485, and Take Profit at 0.84475 are well-placed to capitalize on the downtrend while managing risk effectively. However, traders should remain vigilant for any unexpected market developments that could impact the trade.

Recommended Lot Size

Trading is all about statistics.

While we can experience winning streaks, we can also suffer from losing streaks.

As such, we should always size each trade to withstand losing streaks (if any).

It’s widely recommended that you should not risk more than 2% of your capital for each trade.

We believe it’s easier to control your lot size by limiting your lot sizing to 0.01 for every $500 in your account.

So if you have $5000, then risk no more than 0.10 lot size per trade.

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If you spot a mistake especially when it comes to the price, please use common sense and check the chart.

We wish you good luck and good profit for this trade idea.

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