Chart EUR/GBP Update: Lower in range, but studies continue to rise
Consolidation beneath strong resistance at the 0.8585 monthly high of 30 July has given way to a pullback
| 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
08:45 BST - Consolidation beneath strong resistance at the 0.8585 monthly high of 30 July has given way to a pullback, as intraday studies turn down, with prices reaching support at 0.8560~ before settling into fresh consolidation around 0.8565. A test below 0.8560 cannot be ruled out. But rising daily readings and mixed/positive weekly charts should limit scope in renewed buying interest above 0.8547, (GBP/EUR 1.1700).
Following cautious/corrective trade, fresh gains are looked for. A close above 0.8585 will turn sentiment positive once again 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.