Chart EUR/GBP Update: GBP-driven gains to remain limited
Cautious trade above congestion support at 0.8650 has given way to a GBP-driven bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8765 | ** | November 2023 high | S1 | 0.8650 | ** | congestion | |
| R3 | 0.8752 | ** | 28 Jul YTD high | S2 | 0.8620 | * | GBP/EUR 1.1600 | |
| R2 | 0.8737 | ** | 11 Apr (m) high | S3 | 0.8600 | ** | cong, 38.2% ret | |
| R1 | 0.8695/00 | ** | GBP/EUR 1.1500; cong | S4 | 0.8555 | ** | 50% ret of May-Jul rally |
Asterisk denotes strength of level
08:55 BST - Cautious trade above congestion support at 0.8650 has given way to a GBP-driven bounce, with prices pressuring resistance at 0.8695, (GBP/EUR 1.1500), and congestion around 0.8700. Oversold daily stochastics are flattening, suggesting potential for a test above here. But the bearish daily Tension Indicator and negative weekly charts are expected to limit scope in consolidation beneath critical resistance at 0.8737/52. Following corrective trade, fresh losses are looked for. A later break below 0.8650 will open up stronger support within 0.8620, (GBP/EUR 1.1600) and 0.8600. Already oversold daily stochastics could limit any initial tests of this range in consolidation.