Chart EUR/GBP Update: Gains to remain limited
Anticipated gains have been pushed back from 0.8690 into consolidation above support at the 0.8670 October range lows
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8772 | * | GBP/EUR 1.1400 | S1 | 0.8670 | ** | October range lows | |
| R3 | 0.8750 | * | congestion | S2 | 0.8645 | * | 6 Jan YTD low | |
| R2 | 0.8720 | * | congestion | S3 | 0.8620 | * | GBP/EUR 1.1600 | |
| R1 | 0.8695/00 | * | GBP/EUR 1.1500; cong | S4 | 0.8610 | ** | 50% ret of May-Nov rally |
Asterisk denotes strength of level
08:40 GMT - Anticipated gains have been pushed back from 0.8690 into consolidation above support at the 0.8670 October range lows, as intraday studies turn mixed. Oversold daily stochastics continue to edge higher, highlighting room for a move back towards resistance at 0.8695, (GBP/EUR 1.1500), and congestion around 0.8700. But a tick lower on the flat daily Tension Indicator and bearish weekly charts are expected to limit any further break in renewed selling interest beneath congestion around 0.8720. Following cautious/corrective trade, fresh losses are looked for. However, a close below the 0.8645 low of 6 January is needed to turn sentiment negative and extend November losses towards strong support within 0.8600/20.