Chart EUR/GBP Update: Further immediate losses to remain limited
The anticipated break below congestion support at 0.8560 has bounced from above further support at 0.8547, (GBP/EUR 1.1700), as oversold intraday studies unwind
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8620 | * | GBP/EUR 1.1600 | S1 | 0.8560 | * | congestion | |
| R3 | 0.8610 | * | 38.2% ret of Nov-Jul fall | S2 | 0.8547 | ** | GBP/EUR 1.1700 | |
| R2 | 0.8600 | ** | congestion | S3 | 0.8532 | ** | 12 Aug (m) low | |
| R1 | 0.8580 | * | break level | S4 | 0.8520 | congestion |
Asterisk denotes strength of level
08:55 BST - The anticipated break below congestion support at 0.8560 has bounced from above further support at 0.8547, (GBP/EUR 1.1700), as oversold intraday studies unwind, with prices once again trading above 0.8560. Daily readings continue to track lower, however, highlighting room for fresh losses in the coming sessions. A later break below 0.8547 cannot be ruled out. But rising weekly charts should limit scope in short-covering/consolidation above the 0.8532 monthly low of 12 August. A close beneath here will add weight to already bearish price action and extend September losses towards 0.8500.
Meanwhile, resistance is at 0.8580, and should cap any immediate gains. A close back above here, if seen, would help to stabilise price action and prompt consolidation beneath further congestion around 0.8600.