Chart EUR/GBP Update: Leaning lower
Consolidation above support at 0.8560 is giving way to a drift lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8620 | * | GBP/EUR 1.1600 | S1 | 0.8560 | congestion base | ||
| 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 (w) low | |
| R1 | 0.8585 | * | recent range highs | S4 | 0.8520 | congestion |
Asterisk denotes strength of level
08:45 BST - Consolidation above support at 0.8560 is giving way to a drift lower, as intraday studies remain under pressure, with prices currently trading around 0.8555. Daily readings are also turning down, highlighting room for a test of support at 0.8547, (GBP/EUR 1.1700). But rising weekly charts should limit any deeper reactions in renewed buying interest/consolidation towards strong support at the 0.8532 weekly low of 12 August. A close beneath here, if seen, would add weight to sentiment and confirm a near-term top in place at 0.8585, as late-July losses then focus on support within the 0.8500/20 range.
Following cautious/corrective trade, fresh gains are looked for. Resistance remains at the 0.8585 recent range highs. A close above here will turn sentiment positive once again and extend July gains initially towards congestion around 0.8600.