Chart EUR/GBP Update: Room for higher
Consolidation has given way to anticipated gains
| 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 | * | 30 Jul (m) high | S4 | 0.8520 | congestion |
Asterisk denotes strength of level
08:50 BST - Consolidation has given way to anticipated gains, with prices reaching strong resistance at the 0.8585 monthly high of 30 July before settling into consolidation as intraday studies turn mixed. Daily readings are rising and broader weekly charts are also improving, highlighting room for further strength in the coming sessions. A close above here will improve sentiment and extend July gains towards congestion around 0.8600. Still higher are the 0.8610 Fibonacci retracement and 0.8620, (GBP/EUR 1.1600). But by-then overbought daily stochastics could limit any initial tests in consolidation.
Meanwhile, support is raised to congestion around 0.8560 and should underpin any immediate setbacks.