Chart GBP/USD Update: Leaning lower
Cautious trade has given way to a drift lower
| 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 - Cautious trade has given way to a drift lower, as intraday studies continue to fall, with prices currently trading round 1.3515. Overbought daily stochastics are turning down, highlighting room for a test beneath here. But the rising daily Tension Indicator and improving weekly charts should limit any initial break in renewed consolidation above support at the 1.3450 break level. Meanwhile, resistance is lowered to congestion around 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 should prompt more significant profit-taking.