EUR/GBP Retests Level 0.9080, Resumes Downward Move

EUR/GBP Retests Level 0.9080, Resumes Downward Move

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
EUR/GBP has been on a downward move since September 11. On October 28 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. This implies that the pound will fall and reach level 2.0 Fibonacci extension. That is the low of level 0.8865.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping horizontally indicating the previous trend. The pair is at level 45 of the Relative Strength Index period 14. The pair is below the centerline 50 and in the downtrend zone.

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP pair is on a decline. On October 28 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. This indicates that the pound will fall and reach a level 2.0 Fibonacci extension. That is the low level of 0.8912.

EUR/GBP – 4 Hour Chart

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping downward. It indicates the downtrend. The pair is above the 35% range of the daily stochastic. The Pound is in bullish momentum.

General Outlook for EUR/GBP
The EUR/GBP pair is currently falling on a downward move. According to the Fibonacci tool analysis, the pair will reach level 0.8917 and continue the downward move.



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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.