Chart GBP/USD Update: Under pressure
Cautious trade has given way to anticipated selling interest
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3733 | 4 Feb (w) high | S1 | 1.3558 | ** | 15 Jul (m) high | ||
| R3 | 1.3700 | ** | congestion, 76.4% ret | S2 | 1.3525 | 38.2% ret of Jul-Aug rally | ||
| R2 | 1.3657 | ** | 1 May (m) high | S3 | 1.3500 | * | congestion | |
| R1 | 1.3600 | ** | congestion | S4 | 1.3475 | ** | 50% ret of Jul-Aug rally |
Asterisk denotes strength of level
08:10 BST - Cautious trade has given way to anticipated selling interest, as intraday studies turn down, with the break below 1.3600 currently balanced around 1.3585. Daily stochastics are falling and the daily Tension Indicator has also turned bearish, highlighting room for further losses in the coming sessions. Focus is on the 1.3558 monthly high of 15 July. But a break beneath here will prompt a deeper retracement towards the 1.3525 Fibonacci retracement. However, rising weekly charts could limit any initial tests beneath here in short-covering/consolidation above congestion around 1.3500.
Meanwhile, a close back above congestion resistance at 1.3600 will help to stabilise price action and give way to consolidation beneath the 1.3657 monthly high of 1 May.