Chart EUR/GBP Update: Under pressure
Cautious trade has given way to anticipated losses
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8600 | ** | congestion | S1 | 0.8520 | congestion | ||
| R3 | 0.8585 | * | 30 Jul (m) high | S2 | 0.8500 | ** | congestion | |
| R2 | 0.8560 | 4 Aug low | S3 | 0.8470/75 | ** | 61.8% ret; GBP/EUR 1.1800 | ||
| R1 | 0.8547 | ** | GBP/EUR 1.1700 | S4 | 0.8455 | ** | 15 Jul YTD low |
Asterisk denotes strength of level
08:50 BST - Cautious trade has given way to anticipated losses, with prices currently balanced around 0.8545. Daily readings are falling and rising weekly charts are showing early signs of flattening, suggesting a deterioration in sentiment and room for further losses in the coming sessions. A break below the 0.8535 low of 10 August will open up congestion around 0.8520. Still lower is further congestion around 0.8500. But this range should underpin any immediate tests, as daily stochastics become oversold. Meanwhile, resistance is at 0.8547, (GBP/EUR 1.1700). But a close above 0.8560 is needed to stabilise price action and give way to consolidation within congestion beneath the 0.8585 monthly high of 30 July.