Chart GBP/USD Update: Consolidating test of 1.2715 support
Break of the 1.2865 support has seen sharp pullback to reach strong support at the 1.2715, February high
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3000/14 | * | congestion, Mar high | S1 | 1.2715 | ** | Feb high | |
| R3 | 1.2900 | * | congestion | S2 | 1.2655 | * | 50% Jan/Apr rally | |
| R2 | 1.2865 | ** | 27 Mar low | S3 | 1.2600 | * | congestion | |
| R1 | 1.2800 | * | congestion | S4 | 1.2550 | ** | 5 Feb high |
Asterisk denotes strength of level
02:05 GMT - Break of the 1.2865 support has seen sharp pullback to retrace strong rally from the 1.2100 low of January to reach strong support at the 1.2715, February high. Consolidation here see prices unwinding the oversold intraday studies though negative daily readings suggest risk for break here to open up room for deeper correction to support at 1.2655, 50% Fibonacci level. Correction is expected to give way to renewed buying interest later. Meanwhile, resistance is lowered to the 1.2800 level then the previous low at 1.2865 which is expected to cap. Regaining this will return focus to the upside and see room to the 1.3000/14 congestion and March high.