Chart GBP/USD Update: Room for a minor test lower
The anticipated test of congestion support at 1.3500 is giving way to consolidation
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3788 | ** | 1 Jul YTD high | S1 | 1.3500 | ** | congestion | |
| R3 | 1.3752 | 2 Jul high | S2 | 1.3400 | * | congestion | ||
| R2 | 1.3681 | 4 Jul high | S3 | 1.3300 | * | congestion | ||
| R1 | 1.3590/00 | ** | 24 Jul (w) high; cong | S4 | 1.3200 | * | congestion |
Asterisk denotes strength of level
08:10 BST - The anticipated test of congestion support at 1.3500 is giving way to consolidation, as oversold intraday studies flatten, with prices currently balanced around 1.3515. Overbought daily stochastics continue to unwind and the rising daily Tension Indicator is flattening, highlighting potential for a fresh break. But mixed weekly charts should limit any deeper losses in renewed consolidation above further congestion around 1.3400. Meanwhile, resistance remains at the 1.3590 weekly high of 24 July and congestion around 1.3600. A close above here is needed to improve sentiment and open up the 1.3681 high of 4 July, where fresh consolidation is expected to appear.