Chart GBP/USD Update: Limited tests higher
Cautious trade has given way to a steady bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | 76.4% ret of Jan-Jun fall | S1 | 1.3500 | * | congestion | |
| R3 | 1.3657 | ** | 1 May (m) high | S2 | 1.3475 | ** | 50% ret of Jul-Aug rally | |
| R2 | 1.3600 | ** | congestion | S3 | 1.3425 | ** | 61.8% ret of Jul-Aug rally | |
| R1 | 1.3550 | * | congestion | S4 | 1.3400 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Cautious trade has given way to a steady bounce, with prices currently consolidating the test of congestion resistance at 1.3550. Oversold daily stochastics are ticking higher, suggesting room for a test above here. But the bearish daily Tension Indicator and mixed weekly charts should limit initial scope in renewed consolidation beneath further congestion around 1.3600.
Meanwhile, support remains at congestion around 1.3500 and extends to the 1.3475 Fibonacci retracement. A close beneath here would add weight to sentiment and extend late-August losses towards congestion around 1.3400 and the 1.3425 retracement. Already oversold daily stochastics could limit any initial tests in short-covering/consolidation.