Chart EUR/GBP Update: Extending July gains
Choppy trade has given way to a break higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8650 | * | congestion | S1 | 0.8560 | congestion base | ||
| R3 | 0.8620 | * | GBP/EUR 1.1600 | S2 | 0.8547 | ** | GBP/EUR 1.1700 | |
| R2 | 0.8610 | * | 38.2% ret of Nov-Jul fall | S3 | 0.8532 | * | 12 Aug (m) low | |
| R1 | 0.8600 | ** | congestion | S4 | 0.8520 | congestion |
Asterisk denotes strength of level
08:40 BST - Choppy trade has given way to a break higher, as intraday studies turn higher, with prices reaching resistance within congestion around 0.8600 and the 0.8610 Fibonacci retracement, before settling into consolidation around 0.8595. Daily stochastics continue to rise and the flat daily Tension Indicator is ticking higher, suggesting room for a later break and extension of July gains towards 0.8620, (GBP/EUR 1.1600). Already overbought daily stochastics could limit any initial tests in consolidation, before improving weekly charts prompt a break and open up congestion around 0.8650.
Meanwhile, support remains at the 0.8560 congestion base and extends to 0.8547, (GBP/EUR 1.1700). This range should continue to underpin any immediate setbacks.