Chart GBP/USD Update: Sharp bounce
The bounce from the 1.2352 weekly low of 2 January is extending
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2600 | * | congestion | S1 | 1.2450 | * | congestion | |
| R3 | 1.2585 | ** | 50% ret of Dec-Jan fall | S2 | 1.2352 | * | 2 Jan (w) low | |
| R2 | 1.2525 | * | 38.2% ret of Dec-Jan fall | S3 | 1.2300 | ** | 22 Apr (y) low | |
| R1 | 1.2500 | * | congestion | S4 | 1.2200 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - The bounce from the 1.2352 weekly low of 2 January is extending, as intraday studies continue to rise, with prices currently trading around 1.2470. Daily stochastics have turned higher, unwinding positive divergence, and the bearish daily Tension Indicator is flattening, highlighting an improvement in sentiment and room for a test of congestion resistance at 1.2500. Just higher is the 1.2525 Fibonacci retracement, but already overbought intraday studies are expected to limit any initial tests of this area in consolidation. Meanwhile, a close back below congestion support at 1.2450 would turn sentiment neutral and prompt consolidation above 1.2352.