Chartbook: Chart EUR/GBP: Room for still further losses

Choppy trade around congestion at 0.8350 and 0.8333, (GBP/EUR 1.2000), has given way to the anticipated break,

with prices currently trading just above the 0.8259 fresh year low of 11 November.

Just beneath here is critical support at the 0.8215 multi-year Fibonacci retracement, but a tick higher in oversold monthly stochastics suggests any immediate tests could give way to fresh consolidation.

The monthly Tension Indicator is ticking lower, however, and longer-term charts remain under pressure, highlighting potential for a later break.

A close below 0.8215 and 0.8200 will add weight to sentiment and extend March 2020 losses towards strong support at 0.8000, congestion and GBP/EUR 1.2500.

Meanwhile, resistance is at congestion within 0.8400 - 0.8500.

A monthly close back into this area would help to stabilise price action and prompt renewed consolidation.

However, a further close above stronger congestion resistance at 0.8600, not expected, would improve price action and prompt renewed gains towards 0.8695, (GBP/EUR 1.1500), where more significant selling pressure is expected to appear.