Chart EUR/GBP Update: Strong resistance at 0.8650/65
February gains are extending in GBP-driven trade
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 0.8715 | ** | 28 Dec (m) high | S1 | 0.8620 | * | GBP/EUR 1.1600 | |
R3 | 0.8695/00 | * | GBP/EUR 1.1500; congestion | S2 | 0.8600 | * | congestion | |
R2 | 0.8665 | ** | 76.4% ret of Dec-Feb fall | S3 | 0.8547/50 | ** | GBP/EUR 1.1700; congestion | |
R1 | 0.8650 | * | congestion | S4 | 0.8525 | * | break level | |
Asterisk denotes strength of level
08:35 BST - February gains are extending in GBP-driven trade, with focus turning to congestion resistance at 0.8650. Daily readings are positive, highlighting potential for a test above here towards the 0.8665 Fibonacci retracement. However, already overbought daily stochastics and flattening overbought weekly stochastics are expected to limit any initial tests in profit-taking/consolidation. A close above here, if seen, will turn sentiment positive once again and open up critical resistance within 0.8695/00 - 0.8715. Meanwhile, support is raised to 0.8620, (GBP/EUR 1.1600), and extends to congestion around 0.8600. This area should underpin any immediate setbacks.