EUR/GBP Is Making Lower Highs and Lower Lows, Sellers Threaten to Short

EUR/GBP Is Making Lower Highs and Lower Lows, Sellers Threaten to Short

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
Since September, the pound has been falling. On November 13, the selling pressure resumes as the price fell to a low at 0.8890. The pair is making a series of lower highs and lower lows. Today, the price is making lower highs.

EUR/GBP – 4 Hour Chart

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping downward indicating the downtrend. The pair is at level 43 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 is on a downward move. On November 23 downtrend; a retraced candle body tested the 50% Fibonacci retracement. This implies that the EUR/GBP is likely to fall to level 2.0 Fibonacci extensions. That is it will fall to level 0.8774.

EUR/GBP – 4 Hour Chart

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping sideways. The pair is above the 75% range of the daily stochastic. It indicates that the Pound is in a bullish momentum. The pair is approaching the overbought region of the market.

General Outlook for EUR/GBP
The overall trend of the EUR/GBP pair is bearish. The downtrend will be terminated when the lower highs and lower lows pattern is interrupted. Presently, the pair is making lower highs.



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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.