Chart GBP/USD Update: Lower in range - studies turning down
Cautious trade around congestion resistance at 1.3550 has given way to a pullback to congestion support at 1.3500
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | 76.4% ret of Jan-Jun fall | S1 | 1.3500 | * | congestion | |
| R3 | 1.3657 | ** | 1 May (m) high | S2 | 1.3475 | ** | 50% ret of Jul-Aug rally | |
| R2 | 1.3600 | ** | congestion | S3 | 1.3425 | ** | 61.8% ret of Jul-Aug rally | |
| R1 | 1.3550 | * | congestion | S4 | 1.3400 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Cautious trade around congestion resistance at 1.3550 has given way to a pullback to congestion support at 1.3500, where mixed intraday studies are prompting fresh consolidation. Daily readings have turned down and broader weekly charts continue to deteriorate, highlighting room for deeper losses. However, a close below the 1.3475 Fibonacci retracement is needed to turn sentiment negative and extend late-August losses towards congestion around 1.3400 and the 1.3425 retracement. By-then oversold daily stochastics could limit any initial tests in short-covering/consolidation.
Meanwhile, resistance remains at 1.3550. A close above here, if seen, will open up further congestion around 1.3600, where fresh selling interest is expected to appear.