Chart GBP/USD Update: Limited tests higher
Cautious trade around congestion support at 1.3600 is giving way to a bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3835 | * | October 2021 high | S1 | 1.3600 | * | congestion | |
| R3 | 1.3800 | * | break level | S2 | 1.3500 | ** | congestion | |
| R2 | 1.3788 | ** | 1 Jul YTD high | S3 | 1.3400 | * | congestion | |
| R1 | 1.3700 | break level | S4 | 1.3370 | * | 23 Jun (m) low |
Asterisk denotes strength of level
08:10 BST - Cautious trade around congestion support at 1.3600 is giving way to a bounce, as intraday studies turn higher, with prices currently balanced around 1.3640. Continuation towards resistance at 1.3700 cannot be ruled out. But negative daily stochastics and the bearish daily Tension Indicator are expected to prompt renewed selling interest towards here. Following cautious trade, fresh losses are looked for. A later break below 1.3600 will add weight to sentiment and open up further congestion around 1.3500. Bearish weekly charts highlight potential for continuation towards 1.3400, where rising longer-term charts should prompt fresh buying interest.