Chart GBP/USD Update: Consolidating - room for a minor test lower
Little change, as prices extend cautious trade around 1.2740
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2960 | ** | 50% ret of Sep-Nov fall | S1 | 1.2700 | break level | ||
| R3 | 1.2900 | ** | break level | S2 | 1.2650 | congestion | ||
| R2 | 1.2850 | * | 38.2% ret of Sep-Nov fall | S3 | 1.2600 | * | congestion | |
| R1 | 1.2800 | ** | break level | S4 | 1.2500 | ** | congestion |
Asterisk denotes strength of level
08:05 GMT - Little change, as prices extend cautious trade around 1.2740. Intraday studies are under pressure and overbought daily stochastics are also turning down, suggesting potential for a drift lower towards support at 1.2700. However, the rising daily Tension Indicator and improving weekly charts are expected to limit any tests in buying interest/consolidation. A break, if seen, will add weight to sentiment and open up congestion around 1.2650, where by-then oversold intraday studies are expected to prompt renewed buying interest. Following cautious trade, fresh gains are looked for. A later break above 1.2800 will open up the 1.2850 Fibonacci retracement. But bearish longer-term charts could limit any initial tests in renewed selling interest.