EUR/GBP in an Overbought Region, Battles Resistance at Level 0.900

EUR/GBP in an Overbought Region, Battles Resistance at Level 0.900

Key Resistance Levels: 0.9200, 0.9400, 0.9600
Key Support Levels: 0.8800, 0.8600, 0.8400

EUR/GBP Price Long-term Trend: Bullish
The EUR/GBP pair is an uptrend. The recent upward move was terminated at level 0.90000. The price fell to the support above the 21-day SMA and resume a fresh uptrend. The bulls are still battling to break the resistance at level 0.90000. A break above the resistance will catapult the coin to the high of level 0.92000.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The pair is at level 61 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 indicating the uptrend

EUR/GBP Medium-term Trend: Bullish
On the 4-hour chart, the EUR/GBP pair is in an upward move. A correction candle body tested the 0.382 Fibonacci retracement level. This indicates that the pair will rise and reach a high of 2.618 Fibonacci extension level. However, while in the uptrend the market will reach its first target at 1.618 Fibonacci extension level. While in the second target, the market will reach a high of level 2.618 extension level.

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 above 80% range of the daily stochastic.
The pair is now in the overbought region. Sellers may emerge in the overbought region. However, in a trending market, the overbought condition may not hold.


General Outlook for EUR/GBP
The EUR/GBP pair is in an upward move. The market is expected to move up after reaching the level 1.618 Fibonacci extension level. The pair is facing an initial resistance at level 0.90000.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

 

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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.