Chartbook: Chart EUR/GBP: Any gains to remain limited - long-term studies under pressure

The anticipated continuation of November losses to strong support at the 0.8470 Fibonacci retracement and 0.8475, (GBP/EUR 1.1800), is giving way to a bounce, as weekly studies turn higher,

with prices currently consolidating the test of 0.8600.

Positive weekly studies highlight room for continuation above here, with a break above 0.8620, (GBP/EUR 1.1600), opening up congestion around 0.8650. However, monthly studies continue to fall, suggesting any further gains, if seen, should be limited in renewed selling interest beneath 0.8695, (GB/EUR 1.1500), and congestion around 0.8700.

Following corrective gains, fresh losses are looked for.

Support is at congestion around 0.8500 and extends to the 0.8555 current year low of 15 July.

A close beneath here will add weight to sentiment and confirm continuation of November losses towards strong support within 0.8333, (GBP/EUR 1.2000), and the 0.8375 Fibonacci retracement. Already oversold monthly stochastics could limit any initial tests of this range in short-covering/consolidation, before mixed/negative longer-term charts open up critical support at the 0.8215 multi-year Fibonacci retracement.

A decisive break beneath here would complete a multi-year distribution top beneath 0.9500.