Published: 2024-10-18T07:30:00.000Z
Chart GBP/USD Update: Smart bounce, but gains to remain limited
Senior Technical Strategist
6
Consolidation following the break below 1.3000 has given way to a sharp bounce
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 1.3270 | 3 Oct high | S1 | 1.3000 | ** | congestion | ||
R3 | 1.3200 | * | congestion | S2 | 1.2930 | 19 Aug (w) low | ||
R2 | 1.3175 | * | 4 Oct high | S3 | 1.2865 | ** | 50% ret of Apr-Sep rally | |
R1 | 1.3100 | * | congestion | S4 | 1.2800 | * | congestion |
Asterisk denotes strength of level
08:05 BST - Consolidation following the break below 1.3000 has given way to a sharp bounce, as intraday studies track higher, with prices currently trading around 1.3060. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, highlighting an improvement in sentiment potential for further corrective gains in the coming sessions. Resistance remains at congestion around 1.3100. But negative weekly charts should limit any break above here in renewed selling interest beneath the 1.3175 high of 4 October. Following corrective gains, fresh losses are looked for. However, a close back below 1.3000 is needed to turn sentiment outright negative and confirm continuation of September losses, initially to the 1.2865 Fibonacci retracement.