Chart EUR/GBP Update: Smart bounce
Cautious trade above support at 0.8620, (GBP/EUR 1.1600), has given way to a sharp run higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8766 | ** | Nov 2023 high | S1 | 0.8650 | ** | congestion | |
| R3 | 0.8752 | ** | 28 Jul YTD high | S2 | 0.8620 | * | GBP/EUR 1.1600 | |
| R2 | 0.8737 | ** | 11 Apr (m) high | S3 | 0.8600 | ** | cong, 38.2% ret | |
| R1 | 0.8695 | ** | GBP/EUR 1.1500 | S4 | 0.8555 | ** | 50% ret of May-Jul rally |
Asterisk denotes strength of level
08:45 BST - Cautious trade above support at 0.8620, (GBP/EUR 1.1600), has given way to a sharp run higher, with the break above 0.8650 currently trading around 0.8665. Daily readings have turned higher, highlighting room for continuation towards 0.8695, (GBP/EUR 1.1500). But negative weekly charts should limit any tests in renewed consolidation/selling interest. Meanwhile, support is raised to congestion around 0.8650 and extends to 0.8620. This range should underpin any immediate setbacks. A close below critical support at 0.8600 is needed, however, to turn sentiment negative and confirm a near-term top in place at the 0.8752 current year high of 28 July.