Chart GBP/USD Update: Cautious trade - focus remains on 1.3500
Little change, as a tick lower in intraday studies keeps near-term sentiment cautious
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3681 | 4 Jul high | S1 | 1.3400 | * | congestion | ||
| R3 | 1.3590/00 | ** | 24 Jul (w) high; cong | S2 | 1.3300 | * | congestion | |
| R2 | 1.3500 | ** | congestion | S3 | 1.3200 | * | congestion | |
| R1 | 1.3450 | intraday high | S4 | 1.3140 | ** | 12 May (m) low |
Asterisk denotes strength of level
08:10 BST - Little change, as a tick lower in intraday studies keeps near-term sentiment cautious and extends consolidation just above 1.3450. Daily readings continue to rise and oversold weekly stochastics are turning up, highlighting room for continuation of August gains towards congestion around 1.3500. However, the bearish weekly Tension Indicator should limit any initial tests in consolidation. A close above here, however, would further improve sentiment and open up the 1.3590 weekly high of 24 July, where fresh selling interest is expected to appear. Meanwhile, support remains at congestion around 1.3400. A break beneath here would turn sentiment neutral and prompt consolidation above further congestion around 1.3300.