Chart GBP/USD Update: Cautious trade - studies under pressure
The bounce from the 1.3475 low of 20 April has met selling interest beneath congestion resistance at 1.3550
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | 76.4% ret of Jan-Mar fall | S1 | 1.3500 | ** | congestion | |
| R3 | 1.3660 | * | congestion | S2 | 1.3450 | break level | ||
| R2 | 1.3600 | ** | congestion; 61.8% ret | S3 | 1.3400 | ** | congestion | |
| R1 | 1.3550 | * | congestion | S4 | 1.3350 | * | congestion |
Asterisk denotes strength of level
08:10 BST - The bounce from the 1.3475 low of 20 April has met selling interest beneath congestion resistance at 1.3550, as intraday studies turn down, with focus back on congestion support at 1.3500. Overbought daily stochastics are unwinding and the positive daily Tension Indicator is flattening, highlighting room for a fresh test beneath here. A break will open up 1.3450. But rising weekly charts should limit any deeper losses in renewed buying interest towards congestion around 1.3400. Meanwhile, resistance remains at 1.3550. But a close above stronger resistance at 1.3600 is needed to turn sentiment positive once again and extend late-March gains towards congestion around 1.3660. Stronger resistance at the 1.3700 Fibonacci retracement should prompt more significant profit-taking.