EUR/GBP Is in a Downtrend, Faces Rejection at Level 0.9100

EUR/GBP Is in a Downtrend, Faces Rejection at Level 0.9100

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 pound is presently falling in a downward move. The pair was earlier making a correction when it was rejected at level 0.91000. The downtrend will reach the previous low at level 0.8880.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping horizontally. 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 – 4 Hour Chart

EUR/GBP Medium-term Trend: Bullish
On the 4-hour chart, the EUR/GBP pair is on a downward move. On December 31 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. This retracement indicates that the pound will fall to a level 2.0 Fibonacci extension level. That is the low of 0.8906.

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping downward. The pair is above the 50% range of the daily stochastic. It indicates that the Pound is in bearish momentum. It is also approaching the oversold region

General Outlook for EUR/GBP
The Pound has resumed a downward move. The overall trend has been a sideways move. According to the Fibonacci tool, the market will fall to level 0.8906.

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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.