Chart EUR/GBP Update: Room for lower
Prices have reached support at 0.8547, (GBP/EUR 1.1700), where short-term consolidation is developing
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8610 | * | 38.2% ret of Nov-Jul fall | S1 | 0.8547 | ** | GBP/EUR 1.1700 | |
| R3 | 0.8600 | ** | congestion | S2 | 0.8532 | * | 12 Aug (w) low | |
| R2 | 0.8585 | * | recent range highs | S3 | 0.8520 | congestion | ||
| R1 | 0.8560 | congestion base | S4 | 0.8500 | ** | congestion |
Asterisk denotes strength of level
08:50 BST - Prices have reached support at 0.8547, (GBP/EUR 1.1700), where short-term consolidation is developing. However, daily stochastics continue to fall and the daily Tension Indicator has also turned down, highlighting room for further losses in the coming sessions. A break will open up strong support at the 0.8532 weekly low of 12 August. But rising weekly charts should limit any initial tests in renewed buying interest/consolidation. A close beneath here, if seen, would add weight to sentiment and confirm a near-term top in place at 0.8585, as late-July losses then focus on support within the 0.8500/20 range.
Following cautious/corrective trade, fresh gains are looked for. A close above resistance at 0.8560 will help to stabilise price action. But a further close above the 0.8585 recent range highs is needed to turn sentiment positive once again and extend July gains initially towards congestion around 0.8600.