Chart EUR/GBP Update: Limited pullback
Consolidation beneath the 0.8585 high of 30 July is giving way to a pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8650 | * | congestion | S1 | 0.8547 | ** | GBP/EUR 1.1700 | |
| R3 | 0.8620 | GBP/EUR 1.1600 | S2 | 0.8520 | congestion | |||
| R2 | 0.8600 | ** | congestion | S3 | 0.8500 | ** | congestion | |
| R1 | 0.8585 | 30 Jul high | S4 | 0.8475 | GBP/EUR 1.1800 |
Asterisk denotes strength of level
08:50 BST - Consolidation beneath the 0.8585 high of 30 July is giving way to a pullback, with prices reaching 0.8555 before settling into fresh consolidation. Overbought daily stochastics are turning down, suggesting room for a test of support at 0.8547, (GBP/EUR 1.1700). But the rising daily Tension Indicator and mixed/positive weekly charts should prompt renewed buying interest around here. A break, however, will add weight to sentiment and extend losses towards congestion support at 0.8520. Following cautious/corrective trade, fresh gains are looked for. A close above 0.8585 will improve sentiment and extend mid-July gains towards resistance at congestion around 0.8600 and 0.8620, (GBP/EUR 1.1600).