Chart GBP/USD Update: Room for a minor pullback
The anticipated minor pullback is giving way to cautious trade beneath 1.3500
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3600 | * | congestion | S1 | 1.3400 | * | congestion | |
| R3 | 1.3555 | ** | 76.4% ret of Sep-Nov fall | S2 | 1.3350 | * | recent lows | |
| R2 | 1.3535~ | * | 24 Dec (w) high | S3 | 1.3300 | * | congestion | |
| R1 | 1.3500 | * | congestion | S4 | 1.3200 | ** | congestion |
Asterisk denotes strength of level
08:10 GMT - The anticipated minor pullback is giving way to cautious trade beneath 1.3500, with prices currently balanced around 1.3485. Overbought daily stochastics are unwinding and the positive daily Tension Indicator is flattening, suggesting room for a deeper reaction. Immediate focus is on the 1.3455~ low of 23 December. But rising weekly charts are expected to limit any break beneath here in renewed buying interest/consolidation above congestion support at 1.3400. Following corrective trade, fresh gains are looked for. Resistance is at congestion around 1.3500. But a close above the 1.3555 Fibonacci retracement is needed to turn sentiment positive and extend November gains towards congestion resistance at 1.3600.