Chart GBP/USD Update: Prices remain under pressure
The anticipated break below 1.3100 has reached 1.3040~
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3400 | ** | break level | S1 | 1.3000/10 | * | cong; 4-5 Nov (w) lows | |
| R3 | 1.3250 | * | congestion | S2 | 1.2950 | ** | 50% ret of Jan-Jul rally | |
| R2 | 1.3200 | * | congestion | S3 | 1.2900 | congestion | ||
| R1 | 1.3100 | * | break level | S4 | 1.2950 | ** | 61.8% ret of Jan-Jul rally |
Asterisk denotes strength of level
08:10 GMT - The anticipated break below 1.3100 has reached 1.3040~, where unwinding oversold intraday studies are prompting short-term reactions. A minor bounce is possible, but unwinding overbought daily stochastics and a tick lower in the daily Tension Indicator are expected to limit scope in renewed selling interest towards resistance at the 1.3100 break level. In the coming sessions, further losses are looked for, with support at congestion around 1.3000 and the 1.3010 weekly lows from early November to attract. However, negative weekly charts point to room for extension beneath here, and continuation of July losses towards the 1.2950 Fibonacci retracement. Meanwhile, a close above 1.3100, if seen, will help to stabilise price action and prompt consolidation beneath congestion resistance remains at 1.3200.