Chart GBP/USD Update: Consolidating break below 1.3500 - studies under pressure
The anticipated break below 1.3500 has bounced from 1.3460~
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3752 | 2 Jul high | S1 | 1.3500 | ** | congestion | ||
| R3 | 1.3681 | 4 Jul high | S2 | 1.3400 | * | congestion | ||
| R2 | 1.3590/00 | ** | 24 Jul (w) high; cong | S3 | 1.3300 | * | congestion | |
| R1 | 1.3550 | intraday break level | S4 | 1.3200 | * | congestion |
Asterisk denotes strength of level
08:10 BST - The anticipated break below 1.3500 has bounced from 1.3460~, as oversold intraday studies unwind, with prices once again trading around congestion support at 1.3500. Overbought daily stochastics continue to unwind and the daily Tension Indicator is flat, highlighting potential for fresh losses in the coming sessions. A break back beneath here will open up congestion support at 1.3400. But unwinding oversold weekly stochastics are expected to limit any initial tests in fresh consolidation. Meanwhile, resistance is at 1.3550. But the 1.3590 weekly high of 24 July and congestion around 1.3600 should cap any break above here. A close above 1.3590/00 is needed to improve sentiment and open up the 1.3681 high of 4 July, where fresh consolidation is expected to appear.