Chart GBP/USD Update: Sharp pullback from resistance
Choppy trade following the retest of resistance at the 1.3470 Fibonacci retracement and congestion around 1.3500 has given way to a sharp pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3565~ | 9 Sep (m) high | S1 | 1.3400 | ** | congestion | ||
| R3 | 1.3550 | ** | 76.4% ret of Aug-Oct fall | S2 | 1.3350 | break level | ||
| R2 | 1.3500 | ** | congestion | S3 | 1.3300 | ** | congestion | |
| R1 | 1.3470 | ** | 61.8% ret of Aug-Oct fall | S4 | 1.3250 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - Choppy trade following the retest of resistance at the 1.3470 Fibonacci retracement and congestion around 1.3500 has given way to a sharp pullback, with prices currently pressuring support at congestion around 1.3400. Overbought daily stochastics are unwinding and the positive daily Tension Indicator is showing signs of turning down, suggesting a deterioration in sentiment and room for deeper losses in the coming sessions. A break below 1.3400 will open up 1.3350. However, rising weekly charts could limit any initial tests in fresh consolidation.
Meanwhile, a close above 1.3470 is needed to improve sentiment and extend mid-October gains beyond 1.3500 towards the 1.3550 retracement.