Weekly Chart GBP/USD Update: Extending gains from fresh year low

The anticipated break below support at the 1.3200 range lows has posted a fresh year low at 1.3137,

before bouncing back into congestion above 1.3200.

Cautious trade is giving way to fresh gains, as daily stochastics turn higher and the daily Tension Indicator continues to rise, with prices currently pressuring resistance at the 1.3340 Fibonacci retracement and congestion around 1.3350. A close above here will confirm completion of an accumulation base within the broad 1.3200 - 1.3300 range, as mid-October gains then focus on strong resistance at congestion around 1.3400 and the 1.3405 retracement. Extension beyond here cannot be ruled out. But already overbought daily stochastics and mixed/negative weekly charts should limit scope in profit-taking/consolidation beneath the 1.3470 retracement.

Meanwhile, support is at the 1.3300 range highs.

A close back beneath here, not yet seen, will help to stabilise price action and prompt fresh range extension above 1.3200.

Longer-term charts remain bearish. But a close below critical support at the 1.3137 current year low of 14 October and the 1.3140 monthly low of 24 June is needed to turn sentiment negative and confirm continuation of multi-month losses from the 1.3870 current year high of 27 January.