Published: 2024-04-18T07:46:38.000Z
Chart EUR/GBP Update: Smart bounce - studies improving
Senior Technical Strategist
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Cautious trade around support at 0.8525 has given way to a sharp bounce
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 0.8630 | ** | 61.8% ret of Dec-Feb fall | S1 | 0.8547/50 | ** | GBP/EUR 1.1700; congestion | |
R3 | 0.8620 | * | GBP/EUR 1.1600 | S2 | 0.8525 | * | break level | |
R2 | 0.8600/05 | * | congestion; 50% ret of Dec-Feb fall | S3 | 0.8492/00 | ** | Aug 23 (y) low; congestion | |
R1 | 0.8578 | * | 20 Feb (m) high | S4 | 0.8455 | ** | 76.4% ret of 2022-2023 rally | |
Asterisk denotes strength of level
08:40 BST - Cautious trade around support at 0.8525 has given way to a sharp bounce, with prices currently balanced around 0.8565. Daily readings are turning higher and broader weekly charts are improving, suggesting room for a later break above resistance at the 0.8578 monthly high of 20 February towards stronger reactions at 0.8600/05. However, by-then overbought daily stochastics are expected to limit any initial tests in fresh range trade. Meanwhile, support is raised to 0.8547/50. A close beneath here, if seen, will once again target 0.8525, where renewed buying interest is expected to appear.