EUR/GBP Holds above Level 0.90100 as Buyers Emerge at the Oversold Region

EUR/GBP Holds above Level 0.90100 as Buyers Emerge at the Oversold Region

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 downtrend has reached bearish exhaustion. Buyers are emerging in the oversold region. On September 11 uptrend, the last retraced candle body tested the the38.2% Fibonacci retracement level. This indicates that EUR/GBP will rise and reach level 2.618 Fibonacci extension level. In other words, the pair will reach level 0.9970.

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 43 of the Relative Strength Index period 14. It is in the downtrend zone and below the centerline 50. This indicates that the pair is capable of falling.

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP pair is in a downward move. The pair has fallen and reaches a low of level 0.90100. The uptrend will resume if the current support holds.

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 below the 20% range of the daily stochastic. The Pound is in bearish momentum. EUR/GBP is likely to rise as the price is in the oversold region

General Outlook for EUR/GBP
The EUR/GBP pair is currently on a downward move. The selling pressure has been exhausted at the support of level 0.90100.



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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.