Chart EUR/GBP Update: Choppy trade - studies under pressure
The test of support at 0.8620, (GBP/EUR 1.1600), has given way to a bounce to congestion resistance at 0.8650
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8752~ | ** | 28 Jul YTD high | S1 | 0.8620 | * | GBP/EUR 1.1600 | |
| R3 | 0.8737 | ** | 11 Apr (m) high | S2 | 0.8600 | ** | cong, 38.2% ret | |
| R2 | 0.8695 | ** | GBP/EUR 1.1500 | S3 | 0.8555 | ** | 50% ret of May-Jul rally | |
| R1 | 0.8650 | ** | congestion | S4 | 0.8547/50 | ** | GBP/EUR 1.1700; cong |
Asterisk denotes strength of level
09:30 BST - The test of support at 0.8620, (GBP/EUR 1.1600), has given way to a bounce to congestion resistance at 0.8650, where a tick lower in overbought intraday studies is prompting fresh reactions. Daily readings continue to point lower, highlighting room for a retest of 0.8620. However, broader weekly charts are also under pressure, suggesting room for still deeper losses. A break below 0.8620 will open up strong support at 0.8600, with potential for late-July losses to extend towards the 0.8547/50 - 0.8555 range. Meanwhile, a close above 0.8650, if seen, will help to stabilise price action and prompt consolidation beneath 0.8695, (GBP/EUR 1.1500).