Chart EUR/GBP Update: Lower in range
Cautious trade around 0.8575 has given way to a pullback to support at the 0.8560 low of 4 August
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8650 | * | congestion | S1 | 0.8560 | 4 Aug low | ||
| R3 | 0.8620 | GBP/EUR 1.1600 | S2 | 0.8547 | ** | GBP/EUR 1.1700 | ||
| R2 | 0.8600 | ** | congestion | S3 | 0.8520 | congestion | ||
| R1 | 0.8585 | * | 30 Jul (m) high | S4 | 0.8500 | ** | congestion |
Asterisk denotes strength of level
08:45 BST - Cautious trade around 0.8575 has given way to a pullback to support at the 0.8560 low of 4 August, where unwinding oversold intraday studies are prompting fresh consolidation. Overbought daily stochastics are turning down and the positive daily Tension Indicator is showing early signs of flattening, suggesting room for a test beneath here towards 0.8547, (GBP/EUR 1.1700). However, rising weekly charts should limit any initial tests in consolidation. A close beneath here, however, will add weight to sentiment and prompt a deeper retracement, with focus turn turning to congestion around 0.8520. Meanwhile, resistance remains at the 0.8585 monthly high of 30 July. A close above here would improve sentiment and extend July gains initially towards 0.8600.