Weekly Chart GBP/USD Update: Extending late-June gains

Cautious/choppy trade around 1.3500 has given way to the anticipated break,

with prices currently trading around 1.3550~.

Weekly stochastics continue to rise and the weekly Tension Indicator is also positive, suggesting room for continuation of gains from the 1.3140 monthly low of 24 June towards congestion around 1.3600. Just higher is the 1.3650 break level.

But already overbought weekly stochastics should limit any initial tests of this 1.3600 - 1.3650 range in fresh consolidation.

Improving longer-term charts point to a later break, however, with 1.3700 to then attract.

Meanwhile, support is raised to congestion around 1.3500.

A close beneath here, if seen, would turn sentiment neutral.

Prices would then likely settle into fresh consolidation within broad congestion around 1.3400.

A further close beneath here would add weight to sentiment and open up a deeper retracement towards congestion around 1.3300 and the 1.3273 weekly low of 28 July.