Chart GBP/USD Update: Limited tests higher
Consolidation around congestion support at 1.3450 has given way to a bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | 76.4% ret of Jan-Mar fall | S1 | 1.3500 | ** | congestion | |
| R3 | 1.3660 | * | congestion | S2 | 1.3450 | break level | ||
| R2 | 1.3600 | ** | congestion; 61.8% ret | S3 | 1.3430 | * | 38.2% ret of Mar-Apr rally | |
| R1 | 1.3550 | * | congestion | S4 | 1.3400 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Consolidation around congestion support at 1.3450 has given way to a bounce, as intraday studies turn higher, with the break above 1.3500 reaching 1.3550 before settling into consolidation beneath here. A test above here cannot be ruled out. But falling daily stochastics and the bearish daily Tension Indicator should limit initial scope in renewed consolidation beneath strong resistance at 1.3600. Broader weekly charts are rising. But a close above here is needed to turn sentiment positive and extend late-March gains initially towards congestion around 1.3660. Meanwhile, support is raised to 1.3500. A close beneath here, however, should give way to renewed consolidation above 1.3450.