Chart EUR/GBP Update: Under pressure
The anticipated break below the 0.8685 weekly low of 14 April has reached congestion support at 0.8670
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8735 | * | congestion highs | S1 | 0.8670 | * | congestion | |
| R3 | 0.8720 | * | break level | S2 | 0.8650 | * | congestion | |
| R2 | 0.8695/00 | * | GBP/EUR 1.1500; cong | S3 | 0.8613/20 | ** | 4 Feb (m) low; GBP/EUR 1.1600 | |
| R1 | 0.8685 | * | 14 Apr (w) low | S4 | 0.8600 | * | break level |
Asterisk denotes strength of level
08:50 BST - The anticipated break below the 0.8685 weekly low of 14 April has reached congestion support at 0.8670, where rising oversold intraday studies are prompting short-term reactions. Immediate focus is back on resistance at 0.8685. But negative daily readings and a tick lower in weekly stochastics should limit any immediate tests in renewed selling interest. In the coming sessions, further losses are looked for. A break below 0.8670 will extend April losses towards congestion around 0.8650. But already oversold daily stochastics and the positive weekly Tension Indicator should limit any initial tests in short-covering/consolidation. Meanwhile, a close back above 0.8685 would help to stabilise price action and prompt consolidation beneath 0.8695/00.