Chart GBP/USD Update: Edging higher
Cautious trade has given way to the anticipated break above 1.3000
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3200 | * | congestion | S1 | 1.3000 | ** | congestion | |
| R3 | 1.3175 | * | 4 Oct high | S2 | 1.2907 | * | 23 Oct (w) low | |
| R2 | 1.3100 | * | congestion | S3 | 1.2865 | ** | 50% ret of Apr-Sep rally | |
| R1 | 1.3070 | * | 18 Oct (w) high | S4 | 1.2800 | ** | congestion |
Asterisk denotes strength of level
08:05 BST - Cautious trade has given way to the anticipated break above 1.3000, with prices currently trading around 1.3020. Intraday studies are mixed, suggesting short-term consolidation around here. But daily readings continue to strengthen, highlighting room for further gains towards the 1.3070 weekly high of 18 October. Just higher is congestion around 1.3100, but negative weekly charts are expected to limit any tests of this area in consolidation. A break, however, will further improve price action and open up 1.3175. Meanwhile, a close back below 1.3000 will turn sentiment neutral once again. But a further close below the 1.2907 weekly low of 23 October would turn sentiment negative and extend September losses initially to the 1.2865 Fibonacci retracement.