Chart EUR/GBP Update: Sharp GBP-driven bounce - room for still higher
Anticipated tests higher have extended to congestion resistance at 0.8375 in GBP-driven trade
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8450 | * | congestion | S1 | 0.8350 | break level | ||
| R3 | 0.8434 | ** | 3 Oct (w) high | S2 | 0.8333 | * | GBP/EUR 1.2000 | |
| R2 | 0.8400/03 | ** | congestion; GBP/EUR 1.1900 | S3 | 0.8295/00 | * | 18 Oct YTD low; congestion | |
| R1 | 0.8375 | congestion | S4 | 0.8265 | * | GBP/EUR 1.2100 |
Asterisk denotes strength of level
09:00 GMT - Anticipated tests higher have extended to congestion resistance at 0.8375 in GBP-driven trade, where unwinding overbought intraday studies are prompting a pullback. The daily Tension Indicator continues to rise, highlighting potential for a fresh test above here. But mixed weekly charts should limit scope in renewed selling interest towards resistance at congestion around 0.8400 and 0.8403, (GBP/EUR 1.1900). Meanwhile, support is raised to the 0.8350 break level and extends to 0.8333, (GBP/EUR 1.200). This area should underpin any immediate setbacks. A close beneath here, however, will add weight to sentiment and put focus back on critical support at the 0.8295 current year low of 18 October and congestion around 0.8300.