Chart GBP/USD Update: Gains to remain limited
Cautious trade has given way to anticipated gains
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2942 | * | 22 Jul (w) high | S1 | 1.2735 | intraday base | ||
| R3 | 1.2900 | * | break level | S2 | 1.2700 | ** | congestion | |
| R2 | 1.2865 | * | 30 Jul - 1 Aug highs | S3 | 1.2675 | ** | 50% ret of Apr-Jul rally | |
| R1 | 1.2800 | * | congestion | S4 | 1.2600/13 | ** | congestion; 27 Jun (m) low |
Asterix denotes strength of level
08:10 BST - Cautious trade has given way to anticipated gains, as intraday studies tick higher, with prices currently pressuring congestion resistance at 1.2800. Daily stochastics continue to rise and the daily Tension Indicator is also turning up, highlighting room for continuation beyond here towards 1.2865. However, broader weekly charts remain negative, suggesting potential for fresh selling interest towards here. Meanwhile, support remains at the 1.2735 intraday congestion base. A close beneath here, not yet seen, will open up support within the 1.2675 Fibonacci retracement and congestion around 1.2700. Still further losses would turn sentiment outright negative and extend July losses towards support within 1.2600/13 and the 1.2585 retracement.