EUR/GBP Rebounds Above Level0.8875, Resumes Uptrend

Key Resistance Levels: 0.9200, 0.9400, 0.9600
Key Support Levels: 0.8800, 0.8600, 0.8400

EUR/GBP Price Long-term Trend: Bullish
EUR/GBP was in a downward move as price reached the low of 0.8869. On January 15, the pound resumed upward move. The uptrend reached level 0.8969 and pulled back. Meanwhile, the pound has to rise to level 0.9010 to be out of the downtrend zone.

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping horizontally. The pair has risen to level 40 of the Relative Strength Index period 14. The pound is below the centerline 50. 

EUR/GBP Medium-term Trend: Bullish
On the 4-hour chart, the EUR/GBP pair has reached bearish exhaustion as the market moves up. 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 or level 0.8818. From the price action, the market has reversed at level 0.8875.

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping downward. The pair is above the 60% range of the daily stochastic. The pair is now in a bullish momentum. The pound is likely to rise.

General Outlook for EUR/GBP
EUR/GBP has resumed an upward move since January 15. The pound has earlier risen to level 0.8925 but it is retracing presently to the previous lows. The market will move up if the current support holds.


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