Chart GBP/USD Update: Room for still lower
Anticipated losses have given way to a break below 1.3300
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3527 | * | 1 Oct (w) high | S1 | 1.3200 | * | congestion | |
| R3 | 1.3500 | * | congestion | S2 | 1.3140 | ** | May-Aug lows | |
| R2 | 1.3400 | * | congestion | S3 | 1.3000 | ** | congestion | |
| R1 | 1.3300 | * | congestion | S4 | 1.2950 | ** | 61.8% ret of Jan-Jun rally |
Asterisk denotes strength of level
08:10 BST - Anticipated losses have given way to a break below 1.3300, as intraday studies continue to fall, with prices currently trading around 1.3285. Daily readings are under pressure and broader weekly charts are negative, highlighting room for continuation of late-September losses. Focus is turning to congestion around 1.3200. However, already oversold daily and weekly stochastics are expected to limit any immediate break beneath here in short-covering/consolidation above critical support at the 1.3140 lows from May-August. Meanwhile, a close back above congestion resistance at 1.3300 will help to stabilise price action and prompt consolidation beneath further congestion around 1.3400.