The pullback from 0.8900 is pressuring critical support at the 0.8830 weekly low of 21 January, where oversold intraday studies could prompt short-term consolidation.
Daily stochastics have ticked lower, however, and the Tension Indicator is flattening, highlighting a deterioration in
EURGBP sentiment and scope for a later break. A close below 0.8830 will extend broad September losses towards the 0.8815 Fibonacci retracement, where fresh consolidation could unfold. However, weekly charts are turning down, highlighting risk of a later break and deeper losses towards the 0.8690 low of May 2020.
Meanwhile, a close above 0.8900 would help to stabilise price action and put prices into consolidation below 0.8950.
Daily stochastics have ticked lower, however, and the Tension Indicator is flattening, highlighting a deterioration in
EURGBP sentiment and scope for a later break. A close below 0.8830 will extend broad September losses towards the 0.8815 Fibonacci retracement, where fresh consolidation could unfold. However, weekly charts are turning down, highlighting risk of a later break and deeper losses towards the 0.8690 low of May 2020.Meanwhile, a close above 0.8900 would help to stabilise price action and put prices into consolidation below 0.8950.
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We are an award winning independent research firm, covering Macroeconomics, Policy and Financial Markets. Our Technical Analysis coverage spans 40 FX pairs across developed and emerging markets. Register for a free trial at continuumeconomics.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.