EUR/GBP in a Tight Range between Levels 0.87000 and 0.88500

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

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 on an ascending channel. The market has earlier fallen to level 0.87426 or at the support line. The price rebounded at this low but it is currently facing resistance at the 50-day SMA. The previous rebound on April 21was resisted as the market fell to the support line. However, if the 50-day SMA holds, the market will fall again to the support line.

Daily Chart Indicators Reading:
The pair has earlier rebounded as it reached level 52 of the Relative Strength index period 14. This implies that the pair is in the uptrend zone and above the center line 50. The 50-day SMA is acting as resistance to the pair.

EUR/GBP Medium-term Trend: Ranging
On the 4-hour chart, EUR/GBP is in a sideways move. The pair is fluctuating between level 0.87000 and 0.88500. Recently, the price fell to the support line before it resumed upward movement to the upper price region. The upward move is currently facing resistance.

4-hour Chart Indicators Reading
From every indication, the market had reached the overbought region. The pair is above 90% range of the daily stochastic. We expect sellers to emerge as the market continues its fluctuations. The 50-day and 21-day SMAs are sloping horizontally indicating the range-bound movement.

General Outlook for EUR/GBP
The EUR/GBP pair is ranging in the short term trend. The fluctuation has been on since April. In the same view, the market has reached the overbought region and price is expected to fall. A downward movement is expected.

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