Chart EUR/GBP Update: Consolidating recent gains
The tests above congestion resistance at 0.8720 have given way to a pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8772 | * | GBP/EUR 1.1400 | S1 | 0.8695/00 | ** | GBP/EUR 1.1500; congestion | |
| R3 | 0.8750 | ** | break level | S2 | 0.8670 | * | congestion | |
| R2 | 0.8743 | * | 31 Mar (w) high | S3 | 0.8650 | * | congestion | |
| R1 | 0.8720 | congestion | S4 | 0.8640 | intraday lows |
Asterisk denotes strength of level
09:10 BST - The tests above congestion resistance at 0.8720 have given way to a pullback, as overbought intraday studies turn down, unwinding negative divergence, with prices currently focused on support at 0.8695/00. Flat overbought daily stochastics are also turning down, suggesting room for a test beneath here. But the rising daily Tension Indicator improving weekly charts should limit scope in renewed buying interest/consolidation above congestion support at 0.8670. Following cautious/corrective trade, fresh gains are looked for. A later break back above 0.8720 will improve sentiment and extend May gains towards strong resistance at the 0.8743 weekly high of 31 March.