Chart GBP/USD Update: Strong support at the 1.2570 Fibonacci retracement
The anticipated test of support at the 1.2613 monthly low of 27 June has extended to 1.2600
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2800 | * | congestion | S1 | 1.2600/13 | * | 27 Jun (m) low | |
| R3 | 1.2768 | 13 Nov high | S2 | 1.2570 | ** | 76.4% ret of Apr-Sep rally | ||
| R2 | 1.2720 | break level | S3 | 1.2500 | ** | congestion | ||
| R1 | 1.2665 | * | 8 Aug (m) low | S4 | 1.2450 | congestion |
Asterisk denotes strength of level
08:10 GMT - The anticipated test of support at the 1.2613 monthly low of 27 June has extended to 1.2600, where rising intraday studies are prompting a minor bounce and fresh consolidation above 1.2613. Daily stochastics continue to track lower, highlighting room for a later break beneath this area and extension of September losses towards the 1.2570 Fibonacci retracement. But already oversold daily and weekly stochastics are expected to prompt short-covering towards here and limit any initial tests in fresh consolidation. Meanwhile, resistance is lowered to the 1.2665 monthly low of 8 August. A close above here would stabilise price action and prompt consolidation beneath the 1.2720 break level.