Chart EUR/GBP Update: Room for lower
Cautious trade above 0.8580 has given way to anticipated losses
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8620 | * | GBP/EUR 1.1600 | S1 | 0.8560 | * | congestion | |
| R3 | 0.8610 | * | 38.2% ret of Nov-Jul fall | S2 | 0.8547 | ** | GBP/EUR 1.1700 | |
| R2 | 0.8600 | ** | congestion | S3 | 0.8532 | ** | 12 Aug (m) low | |
| R1 | 0.8580 | * | break level | S4 | 0.8520 | congestion |
Asterisk denotes strength of level
09:00 BST - Cautious trade above 0.8580 has given way to anticipated losses, with prices currently pressuring congestion support at 0.8560. Intraday studies are under pressure and daily readings have turned down, highlighting room for continuation towards strong support at 0.8547, (GBP/EUR 1.1700). However, rising weekly charts should limit any initial tests beneath here short-covering/consolidation above the 0.8532 monthly low of 12 August. A close beneath here will add weight to already bearish price action and extend September losses towards 0.8500.
Meanwhile, resistance is at 0.8580. A close back above here, if seen, would help to stabilise price action and prompt consolidation beneath further congestion around 0.8600.