EUR/GBP Resumes Downward Move After Rejection From Level 0.9000

EUR/GBP Resumes Downward Move After Rejection From Level 0.9000

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
Recently, EUR/GBP was earlier in an uptrend as the pair reached a high of 0.9000. The pair is facing rejection at the recent high as the market resumes downward move. The market has fallen and has reached a low of 0.8976.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping downward indicating the previous trend. The pair is at level 46 of the Relative Strength Index period 14. The pound is below the centerline 50 and it is in the downtrend zone.

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP pair has retested the resistance at $0.8990 twice as it resumed downward. On November 16 downtrend; a retraced candle body tested the 38.2 % Fibonacci retracement level. This implies that the pound will fall to level 2.618 Fibonacci extensions. That is it will reach level 0.8893.

EUR/GBP – 30 Min Chart

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping upward. It indicates the previous uptrend. The pair is above 40% range of the daily stochastic. It indicates that the Pound is in a bullish momentum. However, the bears have taken control of price as selling pressure resumes.


General Outlook for EUR/GBP
The EUR/GBP pair was earlier in an uptrend as it reached the recent high at 0.9000. The pair is falling as it faces rejection at level 0.9000. According to the Fibonacci tool analysis, the pound will fall and reach a low of 0.8893.


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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.