Chart EUR/GBP Update: Prices remain under pressure
Cautious trade following the test of congestion resistance at 0.8650 has given way to anticipated losses
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8737 | ** | 11 Apr (m) high | S1 | 0.8600 | ** | cong, 38.2% ret | |
| R3 | 0.8695 | ** | GBP/EUR 1.1500 | S2 | 0.8555 | ** | 50% ret of May-Jul rally | |
| R2 | 0.8650 | ** | congestion | S3 | 0.8547/50 | ** | GBP/EUR 1.1700; cong | |
| R1 | 0.8620 | * | GBP/EUR 1.1600 | S4 | 0.8505/08 | ** | 61.8% ret; 27 Jun (w) low |
Asterisk denotes strength of level
08:50 BST - Cautious trade following the test of congestion resistance at 0.8650 has given way to anticipated losses, with prices currently consolidating the test of strong support at 0.8600. Daily readings continue to point lower and broader weekly charts are also under pressure, suggesting room for still deeper losses. A break below 0.8600 will add weight to sentiment and extend late-July losses towards the 0.8547/50 - 0.8555 range. However, already oversold daily stochastics could prompt short-covering/consolidation towards here. Meanwhile, resistance is lowered to 0.8620, (GBP/EUR 1.1600). A close above here would help to stabilise price action and prompt consolidation beneath 0.8650.