Chart GBP/USD Update: Balanced at support - studies under pressure
The test of congestion support at 1.3250 is giving way to anticipated consolidation
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3470 | ** | 61.8% ret of Aug-Oct fall | S1 | 1.3250 | * | congestion | |
| R3 | 1.3400 | ** | congestion | S2 | 1.3200 | ** | congestion, 38.2% ret | |
| R2 | 1.3350 | break level | S3 | 1.3137/40 | ** | Jun-Oct YTD lows | ||
| R1 | 1.3300 | ** | congestion | S4 | 1.3100 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - The test of congestion support at 1.3250 is giving way to anticipated consolidation, as oversold intraday studies flatten, with prices currently balanced around 1.3265. Daily stochastics and the daily Tension Indicator continue to track lower, however, and broader weekly charts are deteriorating, suggesting room for further losses in the coming sessions. A later close beneath here will add weight to already bearish price action and extend November losses towards strong support at 1.3200.
Meanwhile, resistance is lowered to congestion around 1.3300. A close back above here, if seen, will help to stabilise price action and prompt consolidation beneath 1.3350.