Chart GBP/USD Update: Meeting selling pressure
The anticipated break above the 1.3558 monthly high of 15 July has not been seen
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | congestion, 76.4% ret | S1 | 1.3500 | * | congestion | |
| R3 | 1.3657 | ** | 1 May (m) high | S2 | 1.3450 | congestion | ||
| R2 | 1.3590/00 | ** | 61.8% ret; congestion | S3 | 1.3400 | ** | congestion | |
| R1 | 1.3558 | ** | 15 Jul (m) high | S4 | 1.3300 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - The anticipated break above the 1.3558 monthly high of 15 July has not been seen, as unwinding overbought intraday studies prompt renewed selling interest around 1.3570 and a break back below 1.3558. Overbought daily stochastics are also turning down, highlighting room for continuation down to congestion support at 1.3500. But the positive daily Tension Indicator and rising weekly charts should limit any deeper losses in renewed buying interest above further congestion around around 1.3450.
Following cautious/corrective trade, fresh gains are looked for. A close above 1.3558 will improve sentiment and extend late-June gains initially towards strong resistance at the 1.3590 Fibonacci retracement and congestion around 1.3600.