Chart GBP/USD Update: Choppy in range
The fresh test of resistance at 1.2800 has met renewed selling interest
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2960 | ** | 50% ret of Sep-Nov fall | S1 | 1.2700 | break level | ||
| R3 | 1.2900 | ** | break level | S2 | 1.2650 | congestion | ||
| R2 | 1.2850 | * | 38.2% ret of Sep-Nov fall | S3 | 1.2600 | * | congestion | |
| R1 | 1.2800 | ** | break level | S4 | 1.2500 | ** | congestion |
Asterisk denotes strength of level
08:05 GMT - The fresh test of resistance at 1.2800 has met renewed selling interest, as intraday studies turn down once again, with prices currently balanced around 1.2740. Overbought daily stochastics are also turning down, suggesting potential for a drift lower towards support at 1.2700. However, the rising daily Tension Indicator and improving weekly charts are expected to limit any tests in buying interest/consolidation. A break, if seen, will add weight to sentiment and open up congestion around 1.2650, where already oversold intraday studies are expected to prompt renewed buying interest. Following cautious trade, fresh gains are looked for. A break above 1.2800 will open up the 1.2850 Fibonacci retracement. But bearish longer-term charts could limit any initial tests in renewed selling interest.