Chart EUR/GBP Update: Leaning lower
Cautious trade is giving way to a drift lower
| 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 | break level |
Asterisk denotes strength of level
09:00 BST - Cautious trade is giving way to a drift lower, as intraday studies turn down, with focus turning back to congestion support at 0.8560. Daily readings have turned down and weekly stochastics are also ticking lower, highlighting room for a test. A break will open up 0.8547, (GBP/EUR 1.1700). But the rising weekly Tension Indicator should limit any initial tests in renewed buying interest/consolidation.
Meanwhile, a close back above resistance at 0.8580 will give way to consolidation beneath strong resistance at congestion around 0.8600 and the 0.8610 Fibonacci retracement. A further close above here is needed to improve sentiment and extend July gains beyond 0.8620, (GBP/EUR 1.1600), towards congestion around 0.8650.