Chart GBP/USD Update: Potential for a minor test higher
Minor gains have met selling interest just beneath resistance at the 1.2720 break level
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2900 | * | break level | S1 | 1.2600/13 | * | cong; 27 Jun (m) low | |
| R3 | 1.2800 | * | congestion | S2 | 1.2570 | ** | 76.4% ret of Apr-Sep rally | |
| R2 | 1.2768 | 13 Nov high | S3 | 1.2500 | ** | congestion | ||
| R1 | 1.2720 | break level | S4 | 1.2450 | congestion |
Asterisk denotes strength of level
08:05 GMT - Minor gains have met selling interest just beneath resistance at the 1.2720 break level, as overbought daily stochastics flatten, with prices currently trading around 1.2695. Oversold daily stochastics continue to unwind and the bearish daily Tension Indicator is flattening, suggesting an improvement in sentiment and room for a test above here. But mixed/negative weekly charts are expected to prompt fresh selling interest/consolidation beneath congestion around 1.2800. Meanwhile, support remains at 1.2600/13. A close beneath here would add weight to sentiment and extend September losses towards the 1.2570 Fibonacci retracement. But already oversold daily and weekly stochastics are expected to prompt short-covering towards here and limit any initial tests in fresh consolidation.