Weekly Chart GBP/USD Update: Consolidation before January losses resume

Little change, as prices extend cautious/choppy trade above congestion support at 1.3200.

Daily stochastics have ticked higher and the daily Tension Indicator is positive, highlighting room for a bounce towards congestion resistance at 1.3300. But already overbought daily stochastics and bearish weekly charts should limit any tests in fresh consolidation. A break, if seen, should give way to further consolidation beneath resistance at the 1.3350 range lows.

Following cautious/corrective trade, fresh losses are looked for.

Support remains at congestion around 1.3200 and extends to the 1.3140 monthly low of 24 June.

A later close beneath here will add weight to sentiment and extend January losses following the break below the multi-month pennant/triangle pattern. Focus will turn to strong support at the 1.2985 Fibonacci retracement and congestion around 1.3000. Bearish weekly charts and mixed/negative longer-term readings highlight room for a later break beneath here. The 1.2850 congestion base from March 2025 will then attract, ahead of the 1.2775 retracement.