Weekly Chart GBP/USD Update: Consolidating test of support - studies under pressure

The anticipated test below 1.3500 has reached support at the 1.3475 Fibonacci retracement, where a tick higher in oversold daily stochastics is prompting a bounce into fresh consolidation above 1.3500.

The daily Tension Indicator remains bearish and broader weekly charts are also coming under pressure, highlighting room for fresh losses into the coming weeks.

A later break below 1.3475 will add weight to sentiment and extend losses from the 1.3675~ current year high of 21 August towards strong support within congestion around 1.3400 and the 1.3425 retracement. However, already oversold daily stochastics could limit any initial tests in renewed consolidation.

Meanwhile, resistance remains at congestion around 1.3650 and extends to 1.3700.

Negative weekly stochastics and the flattening positive weekly Tension Indicator should limit any immediate gains in consolidation beneath here.

However, a close above 1.3700 would complete a multi-month triangle and confirm continuation of gains from the 1.3140 monthly low of 24 June towards the 1.3775 multi-year Fibonacci retracement. But mixed longer-term charts could limit any initial tests of here in renewed profit-taking/consolidation.

(A close above the 1.3870 multi-year high of 27 January would confirm continuation of gains from the 1.0360 year low of September 2022.)