EUR/GBP Is in a Downward Move, May Reverse at Level 0.8977

EUR/GBP Is in a Downward Move, May Reverse at Level 0.8977

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 in a downward move since September 11. The selling pressure is reaching bearish exhaustion. On October 21 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This implies that the pound will fall and reverse at 1.272 Fibonacci extension. That is the low of level 0.8937. Though, the reversal of the trend will not be immediate.

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 44 of the Relative Strength Index period 14. The pound 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 in a downtrend. On October 29 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This indicates that the pound will fall and reverse at level 1.272 Fibonacci extensions. That is a low level of 0.8977.

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 25% range of the daily stochastic. The Pound is in a bullish momentum.

General Outlook for EUR/GBP
The EUR/GBP pair is currently falling in a downward move. The selling pressure has been exhausted. According to the Fibonacci tool analysis, the market is likely to reverse at 1.272 Fibonacci extensions or level 0.8977.

 

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.