Chart GBP/USD Update: Limited tests higher - background under pressure
Choppy trade within support at the 1.3370 monthly low of 23 June and congestion around 1.3400 is giving way to a minor bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | break level | S1 | 1.3400 | * | congestion | ||
| R3 | 1.3650 | congestion | S2 | 1.3370 | * | 23 Jun (m) low | ||
| R2 | 1.3600 | * | congestion | S3 | 1.3300 | * | congestion | |
| R1 | 1.3500 | ** | congestion | S4 | 1.3250 | * | congestion lows |
Asterisk denotes strength of level
08:10 BST - Choppy trade within support at the 1.3370 monthly low of 23 June and congestion around 1.3400 is giving way to a minor bounce, as intraday studies track higher and oversold daily stochastics rise, with prices currently trading around 1.3435. A move towards congestion resistance at 1.3500 cannot be ruled out. But the negative daily Tension Indicator and bearish weekly charts should prompt renewed selling interest beneath here. Following cautious trade, fresh losses are looked for. However, a close below 1.3370 is needed to confirm a near-term top in place at the 1.3788 current year high of 1 July, as prices then extend losses below the rising January trendline, initially opening up a test of congestion around 1.3300.