Chart GBP/USD Update: Choppy in range - studies under pressure
The test below strong support at the 1.3475 Fibonacci retracement has bounced from 1.3465
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | 76.4% ret of Jan-Jun fall | S1 | 1.3500 | * | congestion | |
| R3 | 1.3657 | ** | 1 May (m) high | S2 | 1.3475 | ** | 50% ret of Jul-Aug rally | |
| R2 | 1.3600 | ** | congestion | S3 | 1.3425 | ** | 61.8% ret of Jul-Aug rally | |
| R1 | 1.3550 | * | range highs | S4 | 1.3400 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - The test below strong support at the 1.3475 Fibonacci retracement has bounced from 1.3465, with prices currently balanced in choppy trade around congestion support at 1.3500. Intraday studies have turned down and daily readings are under pressure, highlighting room for fresh losses in the coming sessions. A later close below 1.3475 will add weight to sentiment and extend late-August losses towards congestion around 1.3400 and the 1.3425 retracement. Oversold daily stochastics could limit any initial tests in short-covering/consolidation, before deteriorating weekly charts prompt a deeper retracement.
Meanwhile, resistance remains at congestion around 1.3550. A close above here, if seen, will open up further congestion around 1.3600, where fresh selling interest is expected to appear.