Chart EUR/GBP Update: Consolidating losses - studies remain under pressure
The anticipated break below 0.8532 has met buying interest just above congestion support at 0.8500
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8580 | * | break level | S1 | 0.8500/06 | ** | congestion; 1 Oct low | |
| R3 | 0.8560 | * | congestion | S2 | 0.8470/75 | * | 61.8% ret; GBP/EUR 1.1800 | |
| R2 | 0.8547 | ** | GBP/EUR 1.1700 | S3 | 0.8455 | ** | 15 Jul YTD low | |
| R1 | 0.8532 | ** | 12 Aug (m) low | S4 | 0.8400/03 | ** | congestion; GBP/EUR 1.1900 |
Asterisk denotes strength of level
09:30 BST - The anticipated break below 0.8532 has met buying interest just above congestion support at 0.8500, as intraday studies turn higher, with prices currently balanced around 0.8520. A test of resistance at the 0.8532 monthly low of 12 August is possible. But negative daily readings and deteriorating weekly charts should limit any break in renewed selling interest beneath 0.8547, (GBP/EUR 1.1700).
Following cautious/corrective trade, fresh losses are looked for. A later break below the 0.8506 low of 1 October and 0.8500 will add weight to sentiment and extend late-September losses towards 0.8470/75. However, already oversold daily stochastics should limit any deeper losses in short-covering/consolidation above critical support at the 0.8455 current year low of 15 July.