Chart EUR/GBP Update: Limited tests higher
Consolidation around 0.8500 is giving way to a sharp EUR-driven bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8620 | * | GBP/EUR 1.1600 | S1 | 0.8500 | ** | congestion | |
| R3 | 0.8600 | * | congestion | S2 | 0.8473/75 | ** | 20 Jan (m) high; GBP/EUR 1.1800 | |
| R2 | 0.8575 | * | congestion | S3 | 0.8450 | * | break level | |
| R1 | 0.8547 | ** | GBP/EUR 1.1700 | S4 | 0.8425 | congestion |
Asterisk denotes strength of level
09:30 BST - Consolidation around 0.8500 is giving way to a sharp EUR-driven bounce, with prices currently trading around 0.8525. Intraday studies have ticked higher and oversold daily stochastics are also rising, suggesting room for a test of resistance at 0.8547, (GBP/EUR 1.1700). However, the negative daily Tension Indicator and deteriorating weekly charts are expected to limit any further break beyond here in renewed selling interest towards congestion around 0.8575. Meanwhile, support is raised to congestion around 0.8500. But a close below 0.8473/75 is needed to turn sentiment negative and extend April losses initially towards 0.8450.