Chartbook: Chart GBP/USD: Extending September 2022 gains - studies improving

The anticipated minor pullback has not seen, as cautious multi-week trade gives way to fresh gains.

Steady GBP-buying interest has extended the break above the falling November 2007 trendline, with gains from the 1.0355 year low of September 2022 currently pressuring strong resistance at the 1.3330 Fibonacci retracement.

Monthly stochastics have turned positive and the monthly Tension Indicator is also improving, highlighting a more constructive tone into the coming weeks and room for a later break above here. A close above 1.3330 will further improve already positive sentiment and extend gains towards congestion around 1.3500. 

Monthly stochastics are already overbought, suggesting any initial tests could give way to consolidation, before improving longer-term charts prompt a break and initially open up 1.4000.

 

Meanwhile, support is at the 1.3000 break level.

A close beneath here would turn sentiment neutral once again and put prices back in consolidation above 1.2700. 

A further close beneath here, if seen, would turn price action cautiously negative and open up more significant support at congestion around 1.2500, where rising monthly readings should prompt fresh buying interest.