EUR/GBP Consolidates Above Level 0.8746, Downtrend Likely

EUR/GBP Consolidates Above Level 0.8746, Downtrend Likely

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 has continued its downward move. The price is making lower highs and lower lows. The pair has fallen to the low of level 0.8746 and resumed above it. The downtrend will continue once the current support is broken.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping downward. The pair has fallen to level 37 of the Relative Strength Index period 14. The pound is below the centerline 50. The price is also approaching the oversold region.

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP is in a downward move. On February 4 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The price retracement indicates that the pair will fall and reverse at level 1.618 Fibonacci extensions or level 0.8672.

EUR/GBP – 4 Hour Chart

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping downward. The pair is above the 25% range of the daily stochastic. The market is now in a bearish momentum. The pound has fallen into the oversold region.

General Outlook for EUR/GBP
The pound is now consolidating above level 0.8746. The pair will continue its downward move if the current support breaks.


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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.