Chart GBP/USD Update: Extending losses
Cautious trade around 1.3400 has given way to anticipated losses
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3600 | * | congestion | S1 | 1.3300 | * | congestion | |
| R3 | 1.3500 | ** | congestion | S2 | 1.3250 | * | congestion lows | |
| R2 | 1.3400 | * | congestion | S3 | 1.3200 | * | break level | |
| R1 | 1.3370 | * | 23 Jun (m) low | S4 | 1.3140 | ** | 12 May (m) low |
Asterisk denotes strength of level
08:10 BST - Cautious trade around 1.3400 has given way to anticipated losses, with the break below the 1.3370 monthly low of 23 June adding weight to sentiment and confirming a near-term top in place at the 1.3788 current year high of 1 July. Immediate focus is on congestion around 1.3300. But already oversold intraday studies could limit any initial tests in consolidation, before negative daily readings prompt a break and extend July losses towards the 1.3250 congestion lows. Negative weekly charts point to room for still deeper losses. Meanwhile, resistance is at 1.3370-1.3400. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 1.3500.