EUR/GBP Reaches the Oversold Region at 0.89294 and Makes Upward Correction

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

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

EUR/GBP Price Long-term Trend: Ranging
Since on June 29, EUR/GBP has been fluctuating between levels of 0.89500 and $0.9150. The price has fallen to a lower price range. The selling pressure is likely to be exhausted. Presently, the price action is indicating a bullish signal.

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping horizontally indicating the sideways trend. The pair is at level 41 of the Relative Strength Index period 14. This implies that the market is in the downtrend zone and below the centerline 50.

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP pair is falling as price reaches the low of 0.89294. The price action is indicating that the bearish momentum is subsiding. The price has been in the oversold region since August 26. The market is likely to move up as buyers are likely to emerge.

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping downward. It indicates the present downward move. The pair is below 20% range of the daily stochastic. The pair is in the oversold region. The selling pressure is presumed to be exhausted.

General Outlook for EUR/GBP
The EUR/GBP pair has been on a downward move. The market has reached the oversold region as buyers are likely to emerge. A long order will be necessary to initiate.

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