EUR/GBP Downtrend Will Resume if the Pair Faces Rejection at Level 0.8850

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 selling pressure has reached the low of level 0.8832 but the price is fluctuating below level 0.8850. The downtrend will continue if the current resistance is not breached. Also, the pair will fall as it trading below the SMAs. Upward moves resume when the price breaks above the SMAs.

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping downward. The pair has fallen to level 36 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 January 27 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The price retracement indicates that the pair will fall and reverse at level 2.0 Fibonacci extensions or level 0.8708.

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping downward. The pair is below the 20% 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 likely to continue its downward move. Presently, it is moving up to level 0.8850. The uptrend will resume if the price breaks above level 0.8850. Otherwise, the downtrend will resume. According to the Fibonacci tool analysis, the market will reach level 0.8708.



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