Published: 2024-10-18T07:51:30.000Z
Chart EUR/GBP Update: Fresh year lows - studies under pressure
Senior Technical Strategist
1
Cautious trade has given way to a sharp GBP-driven break lower
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 0.8425 | congestion | S1 | 0.8300 | * | congestion | ||
R3 | 0.8400/03 | ** | congestion; GBP/EUR 1.1900 | S2 | 0.8265 | * | GBP/EUR 1.2100 | |
R2 | 0.8350 | break level | S3 | 0.8250 | ** | April 22 (m) low | ||
R1 | 0.8333 | * | GBP/EUR 1.2000 | S4 | 0.8215 | ** | 50% ret of 2015-2020 rally |
Asterisk denotes strength of level
08:40 BST - Cautious trade has given way to a sharp GBP-driven break lower, with prices currently trading at fresh 2024 year lows around 0.8300. Daily readings have turned down and broader weekly charts are also under pressure, highlighting room for further losses in the coming sessions. A close below 0.8300 will add fresh weight to already bearish sentiment and extend long-term losses from March 2020, initially to 0.8265, (GBP/EUR 1.2100). Still deeper losses cannot be ruled out. Meanwhile, resistance is at 0.8333, (GBP/EUR 1.2000), and extends to 0.8350. An unexpected close above this area would turn sentiment neutral and prompt consolidation beneath strong resistance at 0.8400/03.