EUR/GBP Trades Marginally, May Reverse at Level 0.8862

EUR/GBP Trades Marginally, May Reverse at Level 0.8862

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 trading marginally in a downward move. The market has not shown significant price movement. On January 14, downtrend, a retraced candle body tested the 88.6% Fibonacci retracement level. The retracement indicates that the pair will fall to level 1.1129 Fibonacci extension or level 0.8839. The market is presently consolidating above level 0.8839.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping horizontally. The pair has fallen to level 39 of the Relative Strength Index period 14. The pound is below the centerline 50. The price is also approaching the oversold region.

EUR/GBP Medium-term Trend: Bearish
On the 4-hour chart, the EUR/GBP has continued to fall. On January 25 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 0.8862. From the price action, the market is consolidating for a possible reversal.

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 30% range of the daily stochastic. The pound is now in a bearish momentum. It is reaching bearish exhaustion.

General Outlook for EUR/GBP
The EUR/GBP is consolidating above level 0.8839. The pair has been trading marginally. There is an expectation of a bullish move. The Fibonacci tool has indicated a possible reversal at level 1.272 or 0.8862 low.


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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.