EUR/GBP Plunges After Rejection From Level 0.9080, May Retest Level 0.8844

EUR/GBP Plunges After Rejection From Level 0.9080, May Retest Level 0.8844

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 is in a downward move. The pair is approaching the low of level 0.8800. The market has reached the previous low at level 0.8866. The price has reached the oversold region of the market. Buyers are likely emerge.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping horizontally. The pair is at level 37 of the Relative Strength Index period 14. The pound is below the centerline 50. The market is close to the oversold region of the market.

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP pair has plunged to the previous low after retesting the resistance at level 0.8910. On January 13 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The price retracement indicates that the pair will fall and reverse at level 1.272 Fibonacci extensions.

EUR/GBP – 4 Hour Chart

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping downward. The pair is below the 25% range of the daily stochastic. The market has fallen to the oversold region of the market. Buyers are likely to emerge.


General Outlook for EUR/GBP
Since January 6, the pound has been on a downward move. It fell from level 9080 and it is approaching the low of level 0.8800. According to the Fibonacci tool analysis, the pair will reverse at level 1.272 or level 0.8844.


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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.