EUR/GBP Is an Upward Move, May Reach Overbought Region at Level 0.9116

EUR/GBP Is an Upward Move, May Reach Overbought Region at Level 0.9116

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 has been on a downward move since September 11. The pair faced rejection at level 0.9250. The market is rising to retest level 0.9100 for a possible downward move.

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping horizontally indicating the previous trend. The pair is at level 50 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand.

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP pair is presently making an upward move. On October 23 uptrend, a retraced candle body tested the 88.6% Fibonacci retracement level. This indicates that the pound is likely to rise to level 1.1129 Fibonacci extensions. It will reach level 0.9116. At that level, the market will be in the overbought region which will lead to a price fall.

EUR/GBP – 3 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 28% range of the daily stochastic. The Pound is in bearish momentum.

General Outlook for EUR/GBP
The EUR/GBP pair is currently rising on the upside. This will push the pound to the overbought region. According to the Fibonacci tool analysis, the pair will reach level 0.9116 and reverse. We expect the market to be overbought at that level.


Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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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.