Chart GBP/USD Update: Cautious trade - background studies under pressure
Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation beneath congestion resistance at 1.3550
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | 76.4% ret of Jan-Jun fall | S1 | 1.3500 | * | congestion | |
| R3 | 1.3657 | ** | 1 May (m) high | S2 | 1.3475 | ** | 50% ret of Jul-Aug rally | |
| R2 | 1.3600 | ** | congestion | S3 | 1.3425 | ** | 61.8% ret of Jul-Aug rally | |
| R1 | 1.3550 | * | congestion | S4 | 1.3400 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation beneath congestion resistance at 1.3550. Oversold daily stochastics are unwinding, suggesting room for a test above here. But the bearish daily Tension Indicator and deteriorating weekly charts should limit any break in renewed selling interest beneath further congestion around 1.3600.
Following cautious trade, fresh losses are looked for. Support remains at congestion around 1.3500. But a close below the 1.3475 Fibonacci retracement will add weight to sentiment and extend late-August losses towards congestion around 1.3400 and the 1.3425 retracement. Already oversold daily stochastics could limit any initial tests in short-covering/consolidation.