EUR/GBP Facing Rejection at Level 0.90000, May Find Support at Level 0.88000

EUR/GBP Facing Rejection at Level 0.90000, May Find Support at Level 0.88000

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 in a sideways trend below the overhead resistance at level 0.94000. Since on April 14, the pair has been consolidating above level 0.87000. On May 11, the price rebounded above level 0.87000 to resume upward move and retest level 0.94000 in the overbought region. The upward move is currently facing resistance at level 0.90000. The EUR/GBP pair is now in a downward move. In October 2019 the price was resisted and the downtrend extended to level 0.83817.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The pair is at level 60 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.

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP pair is in an upward move. However, in the brief bear market, a bullish candle body tested the 0.786 retracement level. This determines the extent of the downtrend. According to the Fibonacci tool, the pair will reverse at the 1.272 extension level. From the price action the market has reversed and reached a high of 0.90000. The pair is facing resistance at the recent high and the downward move may continue.

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 below 40% range of the daily stochastic. The market is approaching the oversold region.

General Outlook for EUR/GBP
The EUR/GBP pair is falling and approaching the oversold region in the short term trend. The downtrend may reach a low of level 0.88000. The same price level of 0.90000 was the resistance level in October 2019 and May 2020. In October the market fell to level 0.83817.

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