EUR/GBP Downtrend Has Reached Bearish Exhaustion, May Reverse at Level 0.8740

EUR/GBP Downtrend Has Reached Bearish Exhaustion, May Reverse at Level 0.8740

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
Today, the EUR/GBP has plunged to a low of level 0.8768. This downtrend has been ongoing since January 8 but it has reached bearish exhaustion. The pair has fallen into the oversold region of the market. Buyers expected to emerge at the oversold region as there are bullish signals.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping downward. The pair has fallen to level 31 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 78.6% Fibonacci retracement level. The price retracement indicates that the pair will fall and reverse at level 1.272 Fibonacci extensions or level 0.8740.

EUR/GBP -4 Hour Chart

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping downward. The pair is below the 40% 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 has reached bearish exhaustion. It is said to reverse at level 0.8740. The price action is showing bullish signals at the bottom of the chart.



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Author : Azeez Mustapha

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