Chart GBP/USD Update: Consolidating test of 1.3400/05 - background studies remain positive
Anticipated gains have reached strong resistance at congestion around 1.3400 and the 1.3405 Fibonacci retracement
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3550 | ** | 76.4% ret of Aug-Oct fall | S1 | 1.3350 | break level | ||
| R3 | 1.3500 | ** | congestion | S2 | 1.3300 | ** | congestion | |
| R2 | 1.3470 | ** | 61.8% ret of Aug-Oct fall | S3 | 1.3250 | * | congestion | |
| R1 | 1.3400/05 | ** | congestion; 50% ret | S4 | 1.3200 | ** | cong, 38.2% ret |
Asterisk denotes strength of level
08:10 BST - Anticipated gains have reached strong resistance at congestion around 1.3400 and the 1.3405 Fibonacci retracement, where unwinding overbought intraday studies and flat overbought daily stochastics are prompting short-term reactions. The daily Tension Indicator continues to rise, however, and oversold weekly stochastics are unwinding, suggesting room for still further strength in the coming sessions. A close above here will improve sentiment and extend mid-October gains towards the 1.3470 retracement.
Meanwhile, support is raised to 1.3350. A close beneath here, if seen, will turn sentiment neutral and give way to consolidation above congestion around 1.3300.