Chart GBP/USD Update: Further gains to remain limited
The test of strong support at congestion around 1.3400 and the 1.3415 weekly low of 29 May has given way to a bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3650 | * | congestion | S1 | 1.3400/15 | * | cong; 29 May (w) low | |
| R3 | 1.3632 | ** | 12 Jun YTD high | S2 | 1.3300 | break level | ||
| R2 | 1.3600 | * | congestion | S3 | 1.3250~ | * | range lows | |
| R1 | 1.3500 | ** | congestion | S4 | 1.3140 | ** | 12 May (m) low |
Asterisk denotes strength of level
08:10 BST - The test of strong support at congestion around 1.3400 and the 1.3415 weekly low of 29 May has given way to a bounce to congestion resistance at 1.3500, before settling back to 1.3470. Oversold daily stochastics are flattening, suggesting potential for a test above 1.3500. But the bearish daily Tension Indicator and deteriorating weekly charts should limit scope in renewed selling interest beneath further congestion around 1.3600. Following corrective trade, fresh losses are looked for. A later close below 1.3400/15 will add weight to sentiment and extend losses towards 1.3300. Beneath here are the 1.3250~ range lows. Already oversold daily stochastics and rising longer-term readings could limit any initial tests of this range in fresh consolidation.