Chart GBP/USD Update: Reached the 1.2735 Fibonacci retracement - studies under pressure
The anticipated test of support at the 1.2735 Fibonacci retracement is giving way to expected consolidation
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3000 | ** | congestion | S1 | 1.2735 | ** | 61.8% ret of Apr-Sep rally | |
| R3 | 1.2950 | * | break level | S2 | 1.2700 | * | congestion | |
| R2 | 1.2900 | * | congestion | S3 | 1.2665 | * | 8 Aug (m) low | |
| R1 | 1.2800 | * | congestion | S4 | 1.2613 | * | 27 Jun (m) low |
Asterisk denotes strength of level
08:10 GMT - The anticipated test of support at the 1.2735 Fibonacci retracement is giving way to expected consolidation, as oversold intraday studies unwind. Daily readings continue to track lower and broader weekly charts are also negative, highlighting a bearish tone and room for further losses in the coming sessions. A break beneath here will add weight to sentiment and extend September losses towards congestion around 1.2700. However, already oversold weekly stochastics could limit any further weakness in short-covering/consolidation above the 1.2665 monthly low of 8 August. Meanwhile, resistance is lowered to congestion around 1.2800. A close above here, if seen, will turn sentiment neutral and prompt consolidation beneath further congestion around 1.2900.