Published: 2024-04-24T07:55:14.000Z
Chart EUR/GBP Update: Smart reversal - room for still lower
Senior Technical Strategist
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The anticipated test of congestion resistance at 0.8650 has not been seen
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 0.8665 | ** | 76.4% ret of Dec-Feb fall | S1 | 0.8547/50 | ** | GBP/EUR 1.1700; congestion | |
R3 | 0.8650 | * | congestion | S2 | 0.8525 | * | break level | |
R2 | 0.8620 | * | GBP/EUR 1.1600 | S3 | 0.8500 | ** | congestion | |
R1 | 0.8600 | * | congestion | S4 | 0.8492 | ** | 23 Aug 2023 (y) low | |
Asterisk denotes strength of level
08:45 BST - The anticipated test of congestion resistance at 0.8650 has not been seen, as prices reversed sharply in choppy GBP-driven trade. The break below 0.8600 is giving way to short-term consolidation, as oversold intraday studies flatten. However, overbought daily stochastics are unwinding and the rising daily Tension Indicator is flattening, highlighting potential for further losses in the coming sessions. Support is at 0.8547/50, but mixed/positive weekly charts are expected to limit any initial tests in fresh consolidation. Meanwhile, any immediate tests back above congestion resistance at 0.8600 should meet selling pressure towards 0.8620, (GBP/EUR 1.1600).