Chart GBP/USD Update: Leaning lower
The pullback from strong resistance at congestion around 1.3400 and the 1.3405 Fibonacci retracement has reached support at 1.3350
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3550 | ** | 76.4% ret of Aug-Oct fall | S1 | 1.3350 | break level | ||
| R3 | 1.3500 | ** | congestion | S2 | 1.3300 | ** | congestion | |
| R2 | 1.3470 | ** | 61.8% ret of Aug-Oct fall | S3 | 1.3250 | * | congestion | |
| R1 | 1.3400/05 | ** | congestion; 50% ret | S4 | 1.3200 | ** | cong, 38.2% ret |
Asterisk denotes strength of level
08:10 GMT - The pullback from strong resistance at congestion around 1.3400 and the 1.3405 Fibonacci retracement has reached support at 1.3350, where fresh consolidation is appearing. Intraday studies are mixed/negative and overbought daily stochastics are turning down, highlighting room for a break. Focus is will then turn to congestion around 1.3300. But the positive daily Tension Indicator and improving weekly charts should prompt short-covering/consolidation towards here.
Following cautious/corrective trade, fresh gains are looked for. However, a close above 1.3400/05 will turn sentiment positive and extend mid-October gains towards the 1.3470 retracement. Just higher is congestion around 1.3500, where profit-taking/consolidation could develop.