EUR/GBP is in the overbought region, Selling pressure likely at level 0.90

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 in a bear market. The price is correcting upward but faces resistance at 0.90000. The bulls tested the same resistance twice without breaking it. The price has formed a double top signaling a downward movement of price.

Daily Chart Indicators Reading:
The pair is at level 62 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: Bearish
On the 4-hour chart, the EUR/GBP pair is in an upward move. A correction candle body is testing the 0.786 Fibonacci retracement level. This determines how far the currency pair will rise and reverse. The 0.786 retracement level indicates that the pair will reverse at 1.272 Fibonacci extension level. This is equivalent to the price level of 0.90000.

4-hour Chart Indicators Reading
The 50-day and 21-day SMA are sloping upward indicating the uptrend. The pair is about 80% range of the daily stochastic. This implies that the market is in the overbought region. Sellers may likely emerge to push prices downward.

General Outlook for EUR/GBP
The EUR/GBP pair is currently in the overbought region. The Fibonacci indicates that the market will rise and reverse at level 0.90000. The pair is likely to be on a downward move after the resistance.

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