Chart GBP/USD Update: Extending September losses
Consolidation is giving way to anticipated continuation lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2950 | * | break level | S1 | 1.2665 | * | 8 Aug (m) low | |
| R3 | 1.2900 | * | congestion | S2 | 1.2613 | * | 27 Jun (m) low | |
| R2 | 1.2800 | * | congestion | S3 | 1.2570 | ** | 76.4% ret of Apr-Sep rally | |
| R1 | 1.2768 | 13 Nov high | S4 | 1.2500 | ** | congestion |
Asterisk denotes strength of level
08:10 GMT - Consolidation is giving way to anticipated continuation lower, with prices currently balanced above strong support at the 1.2665 monthly low of 8 August. Daily readings continue to track lower and the weekly Tension Indicator is also negative, highlighting potential for a break beneath here and continuation of September losses towards the 1.2613 monthly low of 27 June. Flattening oversold weekly stochastics, however, are expected to limit any deeper reactions in short-covering towards the 1.2570 Fibonacci retracement. Meanwhile, resistance remains at congestion around 1.2800. A close above here, if seen, will turn sentiment neutral and prompt consolidation beneath further congestion around 1.2900.