Chart GBP/USD Update: Gains to remain limited
Consolidation above strong support at congestion around 1.3200 and the 1.3215 Fibonacci retracement has given way to a steady bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3550 | congestion | S1 | 1.3300 | * | congestion | ||
| R3 | 1.3500 | ** | congestion | S2 | 1.3215 | ** | 76.4% ret of Nov-Jan rally | |
| R2 | 1.3450 | ** | congestion | S3 | 1.3200 | ** | congestion | |
| R1 | 1.3400 | ** | congestion | S4 | 1.3150 | congestion |
Asterisk denotes strength of level
08:10 GMT - Consolidation above strong support at congestion around 1.3200 and the 1.3215 Fibonacci retracement has given way to a steady bounce, with prices currently balanced above 1.3300. Daily stochastics are turning higher and the bearish daily Tension Indicator is flattening, suggesting room for further tests higher. But negative weekly charts and deteriorating longer-term readings should limit scope in renewed selling interest towards congestion resistance at 1.3400. Following cautious/corrective trade, fresh losses are looked for. A break below congestion support at 1.3300 will add weight to sentiment. But a further close below 1.3200/15 is needed to turn sentiment negative and extend late-January losses towards further congestion around 1.3150.