Chart GBP/USD Update: Cautious trade - studies remain under pressure
Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation beneath congestion resistance at 1.3400
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3550 | * | range highs | S1 | 1.3345 | ** | 61.8% ret of Jun-Aug rally | |
| R3 | 1.3500 | * | congestion | S2 | 1.3300 | ** | congestion | |
| R2 | 1.3465 | * | recent lows | S3 | 1.3270/73 | ** | 76.4% ret; 28 Jul (w) low | |
| R1 | 1.3400 | ** | congestion | S4 | 1.3200 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation beneath congestion resistance at 1.3400. Oversold daily stochastics continue to edge higher, suggesting room for a retest. But the negative daily Tension Indicator and bearish weekly charts should limit any tests in renewed selling interest/consolidation. Following cautious/corrective trade, fresh losses are looked for. A later break below support at the 1.3345 Fibonacci retracement will add weight to sentiment and extend losses from the 1.3675 monthly high of 21 August towards congestion around 1.3300. Just beneath here is 1.3270/73, where short-covering/consolidation is expected to appear.
Meanwhile, a close above 1.3400, if seen, will help to stabilise price action and prompt consolidation beneath the 1.3465 recent lows.