Chart GBP/USD Update: Leaning lower
Cautious trade is giving way to the anticipated break below 1.3400
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3527 | ** | 1 Oct (w) high | S1 | 1.3300 | * | congestion | |
| R3 | 1.3500 | * | congestion | S2 | 1.3250 | * | congestion | |
| R2 | 1.3471 | 17 Oct (w) high | S3 | 1.3200 | * | congestion | ||
| R1 | 1.3400 | * | congestion | S4 | 1.3140~ | ** | May-Aug (m) range lows |
Asterisk denotes strength of level
08:10 BST - Cautious trade is giving way to the anticipated break below 1.3400, with prices currently trading around 1.3385. Intraday studies are under pressure and overbought daily stochastics are unwinding, highlighting room for deeper reactions. Support is down to congestion around 1.3300, but the positive daily Tension Indicator is expected to limit any initial tests in consolidation. Broader weekly charts are coming under pressure. But a close below 1.3250 is needed to turn sentiment negative and extend mid-September losses towards further congestion around 1.3200. Meanwhile, a close back above congestion resistance at 1.3400 would help to stabilise price action and give way to consolidation beneath the 1.3471 weekly high of 17 October.