trend analysis

Intraday frame (one hour): The current trend is bearish. This is evident from the formation of a series of lower highs (LH) and lower lows (LL) following the breakout of the all-time high area of ​​£29.50.

Moving Average: Price is currently below the moving average (orange line on the chart), which confirms short-term selling pressure.

Market Structure: At the £27.00 level, the trend signature (ChoCh) changed from bullish to bearish and was confirmed by a downward breakout structure (BOS).

2. Technical analysis schools (SMC & Classic)
Smart Currency Concept (SMC):

Order Zone: Price is now within the strong demand zone (OB-H) defined by the blue dashed rectangle between the 23.00 – 23.80 pound levels.

Liquidity: We have noticed a quiet consolidation process during the recent consolidation range, which indicates an attempt to establish a price base.

Classic analysis:

Pattern: Price is moving in a narrow descending channel and is currently trying to break out of the upper limit of the channel.

Strong support: £23.00 (historical and psychological support).

Nearby resistance: £25.13 (representing the moving average) then £26.50.

3. Technical indicators and price action (Price Action)

Volume: We noticed a significant decrease in volume during the recent decline, which is a positive indicator that selling is weaker in support areas.

Japanese Candlestick: Pin Bars appeared near the EGP 23.50 level, reflecting the presence of buyers preventing the price from falling further.

Indicators (implied interpretation): The price is approaching oversold territory and if the price remains above 23.00, a positive divergence is likely.

4. Future vision and scenarios
A- Bullish scenario (possible):

Entry point: Breakout and stability above £24.50 (current price) or wait for confirmation of a break above the moving average of £25.15.

Target:

First goal: 26.50 pounds.

Second goal: 28.00 lbs.

Stop Loss: Daily closing price below £23.00.

Risk-reward ratio (R:R): about 1:3.

B- Bearish scenario:

If the 23.00 EGP level is breached and the daily close and volume are high, the current demand area will expire.

Downside target: Price could rise to £21.50.

5. Final recommendations

For intraday speculators: Enter any dip touching £24.00 and place a very close stop at £23.50.

For mid-term investors: The stock is in a good consolidation zone (SMC discount zone). As long as the price remains above £23.00 it is recommended to increase the quantity.

Technical Advice: The stock is currently in the “Close Watch” phase; stability above the (OB-H) area shown on the chart is key to another move back to the 27-pound level.

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