Chart GBP/USD Update: Sharp bounce
Cautious trade has given way to a sharp USD-driven bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3550 | * | congestion | S1 | 1.3400 | ** | congestion | |
| R3 | 1.3515 | ** | 50% ret of Jan-Mar fall | S2 | 1.3350 | congestion | ||
| R2 | 1.3500 | ** | congestion | S3 | 1.3300 | * | congestion | |
| R1 | 1.3430 | * | 38.2% ret of Jan-Mar fall | S4 | 1.3200 | * | congestion |
Asterisk denotes strength of level
08:10 BST - Cautious trade has given way to a sharp USD-driven bounce, with prices currently pressuring resistance at the 1.3430 Fibonacci retracement. Daily readings have ticked higher and oversold weekly stochastics are unwinding, highlighting room for continuation beyond here towards congestion around 1.3500 and the 1.3515 retracement. However, the bearish weekly Tension Indicator and negative longer-term charts should limit any initial tests in profit-taking/consolidation. Meanwhile, support is raised to congestion around 1.3400. A close beneath here, if seen, will help to stabilise price action and prompt consolidation above further congestion around 1.3350.