Chart EUR/GBP Update: Consolidating
Cautious trade is giving way to a drift lower from resistance at the 0.8585 recent range highs
| 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 | * | recent range highs | S4 | 0.8520 | congestion |
Asterisk denotes strength of level
08:45 BST - Cautious trade is giving way to a drift lower from resistance at the 0.8585 recent range highs. Immediate focus is turning back to support at the 0.8560 congestion base. But mixed/positive daily readings should limit any tests in renewed buying interest/consolidation. A break, if seen, should meet renewed demand towards 0.8547, (GBP/EUR 1.1700).
Following cautious trade, fresh gains are looked for. However, a close above 0.8585 is needed to turn sentiment positive and extend July gains towards congestion around 0.8600. Still higher is the 0.8610 Fibonacci retracement, where short-term profit-taking could appear.