Chart GBP/USD Update: Smart bounce from 1.3400, but daily studies under pressure
The anticipated test of congestion support at 1.3400 has been following by a bounce
| 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 (m) high | S3 | 1.3300 | * | congestion | |
| R1 | 1.3500 | * | congestion | S4 | 1.3200 | ** | congestion |
Asterisk denotes strength of level
08:10 GMT - The anticipated test of congestion support at 1.3400 has been following by a bounce, as intraday studies turn higher, with prices currently balanced around 1.3455. Daily readings continue to track lower, highlighting room for a retest of 1.3400. But rising weekly charts should limit any break in renewed buying interest/consolidation above the 1.3350 recent lows. Following corrective trade, fresh gains are looked for. Resistance remains at congestion around 1.3500 and extends to the 1.3535~ monthly high of 24 December. However, a close above the 1.3555 Fibonacci retracement is needed to turn sentiment positive and extend November gains towards congestion resistance at 1.3600.