Chart GBP/USD Update: Leaning lower in choppy trade
Choppy trade is giving way to a fresh pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3500 | ** | congestion | S1 | 1.3233 | * | 23 Apr (w) low | |
| R3 | 1.3435 | ** | 26 Sep 2024 (y) high | S2 | 1.3200 | ** | break level | |
| R2 | 1.3400 | congestion | S3 | 1.3165 | ** | 38.2% ret of Apr rally | ||
| R1 | 1.3300 | break level | S4 | 1.3100 | * | break level |
Asterisk denotes strength of level
08:10 BST - Choppy trade is giving way to a fresh pullback, as intraday studies turn down, with the break below 1.3300 adding weight to sentiment and putting focus on strong support at the 1.3233 weekly low of 23 April. Already oversold intraday studies could limit any initial tests in consolidation, before deteriorating daily readings and unwinding overbought weekly stochastics prompt a break. A close beneath here will complete a near-term distribution top beneath the 1.3435 year high of 26 September 2024, and add weight to sentiment, as focus then turns to support at 1.3200. Beneath here is the 1.3165 Fibonacci retracement. Meanwhile, a close back above 1.3300 will help to stabilise price action and prompt consolidation beneath congestion around 1.3400.