Chart EUR/GBP Update: Under pressure
Cautious trade is giving way to the anticipated test lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8772 | * | GBP/EUR 1.1400 | S1 | 0.8670 | * | congestion | |
| R3 | 0.8750 | * | congestion | S2 | 0.8650 | * | congestion | |
| R2 | 0.8715~ | * | 4-5 Mar high | S3 | 0.8620 | GBP/EUR 1.1600 | ||
| R1 | 0.8695/00 | * | GBP/EUR 1.1500; cong | S4 | 0.8613 | ** | 4 Feb YTD low |
Asterisk denotes strength of level
09:00 GMT - Cautious trade is giving way to the anticipated test lower, as intraday studies turn down, with the break below 0.8695/00 opening up congestion support at 0.8670. The daily Tension Indicator is also falling, pointing to room for continuation beneath here. Focus will then turn to further congestion around 0.8650. But flat oversold daily stochastics and rising weekly charts should limit any initial tests in short-covering/consolidation. Meanwhile, resistance is lowered to 0.8695, (GBP/EUR 1.1500), and congestion around 0.8700. A close back above here, if seen, would help to stabilise price action and give way to consolidation beneath the 0.8715~ high from 4-5 March.