Chart EUR/GBP Update: Limited bounce from 0.8600/20
Anticipated losses have reached strong support within the 0.8600-0.8620 range
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8750~ | ** | 28 Jul YTD high | S1 | 0.8620 | * | GBP/EUR 1.1600 | |
| R3 | 0.8737 | ** | 11 Apr (m) high | S2 | 0.8600 | ** | cong, 38.2% ret | |
| R2 | 0.8695 | ** | GBP/EUR 1.1500 | S3 | 0.8555 | ** | 50% ret of May-Jul rally | |
| R1 | 0.8650 | ** | congestion | S4 | 0.8547/50 | ** | GBP/EUR 1.1700; cong |
Asterisk denotes strength of level
08:45 BST - Anticipated losses have reached strong support within the 0.8600-0.8620 range, where unwinding oversold intraday studies and flattening oversold daily stochastics are prompting a short-term bounce. The daily Tension Indicator continues to track lower, however, and overbought weekly stochastics are flattening, suggesting room for still further losses in the coming sessions. A close below 0.8600 will add weight to sentiment and extend July losses towards the 0.8555 Fibonacci retracement and 0.8547/50. Meanwhile, resistance is lowered to congestion around 0.8650. A close above here would help to stabilise price action and prompt consolidation beneath 0.8695, (GBP/EUR 1.1500).