EUR/GBP Attempts an Upward Move, Consolidates Above 0.8700

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
EUR/GBP was earlier in the bull market in August as it reached a high of 0.9317 but was resisted. The Fibonacci tool was used to determine the extent of the downward move. In October, a bullish candlestick tested the 0.618 Fibonacci retracement level while price was correcting. The implication was that the market  reversed at the 1.618 Fibonacci extension level.

This has been confirmed in January. The bear market gave birth to the bull market in March. At a low of $0.8294, the pair rebounded and price rallied to the high of 0.9400 on March 17. Unfortunately, price reached the overbought region of the market. Sellers emerged and there was a downward movement. Price fell to the support of the 50-day SMA. An upward movement is expected.

Daily Chart Indicators Reading:
The price is currently at level 44 of the Relative Strength index period 14. This implies that the pair is in the downtrend zone and below the centerline 50. The market is likely to rise if the 50-day SMA support holds.

EUR/GBP Medium-term Trend : Bearish
On the 4-hour chart, the pair is in a descending channel. The downtrend has been exhausted as price continues to consolidate above 0.8700. A break above the resistance line will enable price to resume an uptrend. In addition, a break below the support  line will result in a downward move.

4-hour Chart Indicators Reading
The market is presently above 50% range of the daily stochastic indicating that the pair is in a bullish momentum. The 50-day and 21-day SMA are sloping horizontally indicating the sideways moves

General Outlook for EUR/GBP
The pair is trading above the 50-day SMA. It is also consolidating above the 0.8700 support level. The support has been holding in the last two weeks. An upward movement is expected. Meanwhile, the stochastic indicator is showing bullish signals.

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