Published: 2024-06-24T08:26:24.000Z
Chartbook: Chart EUR/GBP: Bearish monthly studies to limit any corrective tests higher
Senior Technical Strategist
1
Anticipated corrective gains have been pushed back from beneath resistance at 0.8695, (GBP/EUR 1.1500
Anticipated corrective gains have been pushed back from beneath resistance at 0.8695, (GBP/EUR 1.1500),
with prices falling steadily to trade beneath congestion around 0.8500.
Monthly studies are negative, highlighting a bearish tone and room for further weakness into 2024Q3.
Focus is on congestion support at 0.8350 and 0.8333, (GBP/EUR 1.2000), with a close beneath here adding weight to already bearish price action and extending September 2022 losses towards critical support at the 0.8215 multi-year Fibonacci retracement.
However, monthly stochastics are already oversold, suggesting any initial tests could give way to consolidation, before bearish longer-term charts prompt a break.
Meanwhile, resistance is lowered to the weekly gap high around congestion at 0.8500, and extends to further congestion around 0.8600.
A break back into this area would turn sentiment neutral and prompt fresh consolidation.
However, a close above 0.8600, if seen, would turn price action positive and put focus back on 0.8695, (GBP/EUR 1.1500). Just higher is critical resistance at the 0.8765 monthly high of 28 December, but this area should cap any unexpected tests.