EUR/GBP Approaches the Oversold Region, Targets Level 0.89500

EUR/GBP Approaches the Oversold Region, Targets Level 0.89500

Key Resistance Levels: 0.9200, 0.9400, 0.9600
Key Support Levels: 0.8800, 0.8600, 0.8400

EUR/GBP Price Long-term Trend: Bearish
The EUR/GBP pair is correcting downward as it reaches the high of level 0.90000. At the recent high, the price action is indicating a bearish pin bar or a shooting star. The bearish pin bar is responsible for the downward movement of the pair. On the upside, if the selling pressure is exhausted, the uptrend will resume.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The pair is at level 63 of the Relative Strength index period 14. This implies that the market is in the uptrend zone and above the centerline 50. The 50-day SMA and 21-day SMA are sloping upward indicating the uptrend

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP pair is in an upward move. A correction candle body tested the 0.236 Fibonacci retracement level. This indicates the extent of the upward move. It indicates that the pair will rise to 4.236 Fibonacci extension level. At first, it will rise to 1.272 extension before resuming the upward. In the meantime, the price action is showing a bullish signal.

EUR/GBP – 4 Hour Chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMA are sloping upward indicating the uptrend. The pair is above 25% range of the daily stochastic. The stochastic bands are making a U-turn upward.

General Outlook for EUR/GBP
The EUR/GBP pair is likely to move up as it fell to a level 0.786 retracement level. The currency pair will rise to level 1.272 Fibonacci extension level and continue the upward move.

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Author : Azeez Mustapha


Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.