Chart GBP/USD Update: Limited tests higher
Cautious trade around congestion resistance at 1.3550 is giving way to a push higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | 76.4% ret of Jan-Jun fall | S1 | 1.3500 | * | congestion | |
| R3 | 1.3657 | ** | 1 May (m) high | S2 | 1.3475 | ** | 50% ret of Jul-Aug rally | |
| R2 | 1.3600 | ** | congestion | S3 | 1.3425 | ** | 61.8% ret of Jul-Aug rally | |
| R1 | 1.3550 | * | congestion | S4 | 1.3400 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Cautious trade around congestion resistance at 1.3550 is giving way to a push higher, with prices currently trading around 1.3560. Intraday studies have ticked higher and oversold daily stochastics continue to unwind, suggesting room for continuation towards further congestion around 1.3600. However, the flat daily Tension Indicator and deteriorating weekly charts should limit any initial tests in fresh consolidation.
Following cautious trade, fresh losses are looked for. Support remains at congestion around 1.3500. But a close below the 1.3475 Fibonacci retracement will add weight to sentiment and extend late-August losses towards congestion around 1.3400 and the 1.3425 retracement. By-then oversold daily stochastics could limit any initial tests in short-covering/consolidation.