Chart GBP/USD Update: Limited tests higher - background studies under pressure
Consolidation following the test of support within the 1.3440 Fibonacci retracement and congestion around 1.3450 is giving way to a bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3733 | ** | 4 Feb (w) high | S1 | 1.3500 | ** | congestion | |
| R3 | 1.3700 | break level | S2 | 1.3440/50 | ** | 50% ret; congestion | ||
| R2 | 1.3650 | * | break level | S3 | 1.3400 | ** | congestion | |
| R1 | 1.3600 | * | congestion | S4 | 1.3340 | ** | 61.8% ret of Nov-Jan rally |
Asterisk denotes strength of level
08:10 GMT - Consolidation following the test of support within the 1.3440 Fibonacci retracement and congestion around 1.3450 is giving way to a bounce, as intraday studies turn higher, with prices currently balanced in fresh consolidation above 1.3500. Oversold daily stochastics are ticking higher, suggesting room for further tests higher. But the bearish daily Tension Indicator and negative weekly charts should limit scope in renewed selling interest beneath congestion resistance at 1.3600. Following cautious/corrective trade, fresh losses are looked for. A later close below 1.3440/50 will add weight to sentiment and extend late-January losses towards congestion around 1.3400. Continuation towards the 1.3340 retracement cannot be ruled out.