Chart GBP/USD Update: Choppy in range - studies improving
The test below congestion support at 1.3200 is giving way to a steady bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3400 | ** | congestion | S1 | 1.3200 | * | congestion | |
| R3 | 1.3300 | * | congestion | S2 | 1.3150 | * | congestion | |
| R2 | 1.3285 | * | 38.2% ret of Sep-Nov fall | S3 | 1.3100 | * | break level | |
| R1 | 1.3250 | * | congestion | S4 | 1.3035~ | 20 Nov (w) low |
Asterisk denotes strength of level
08:10 GMT - The test below congestion support at 1.3200 is giving way to a steady bounce, as oversold intraday studies unwind, with prices currently trading just beneath congestion resistance at 1.3250. Daily readings have ticked higher, suggesting room for a test above here. But already overbought daily stochastics are expected to limit any initial break in fresh consolidation beneath the 1.3285 Fibonacci retracement, before improving weekly charts prompt still further gains. A close above 1.3285 will improve price action and extend November gains beyond 1.3300. Meanwhile, a close below 1.3200 will add weight to sentiment and open up a test of congestion around 1.3150.