Chart GBP/USD Update: Limited tests higher
The test below 1.2200 has bounced from 1.2160
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2500 | ** | break level | S1 | 1.2200 | * | congestion | |
| R3 | 1.2400 | minor congestion | S2 | 1.2160 | 17 Jan low | |||
| R2 | 1.2352 | * | 2 Jan (w) low | S3 | 1.2100 | ** | 13 Jan YTD low | |
| R1 | 1.2300 | * | break level | S4 | 1.2037 | ** | October 2023 (m) low |
Asterisk denotes strength of level
08:10 GMT - The test below 1.2200 has bounced from 1.2160, as intraday studies turn higher, with prices once again trading around 1.2200. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting potential for a test higher towards resistance at the 1.2300 break level. But negative weekly charts are expected to limit any extension beyond here in renewed selling interest towards 1.2352. Following cautious trade, fresh losses are looked for. A close below 1.2160 will open up strong support at the 1.2100 current year low of 13 January. Further losses will add weight to sentiment and target critical support at the 1.2037 monthly low of October 2023 and congestion around 1.2000. However, negative weekly charts point to potential for still deeper losses, with a close beneath here confirming continuation of September 2024 losses.