Chart GBP/USD Update: Edging higher
Little change, as flat overbought daily stochastics keep near-term sentiment cautious
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3400 | ** | break level | S1 | 1.3100 | * | break level | |
| R3 | 1.3250 | * | congestion | S2 | 1.3000 | * | congestion | |
| R2 | 1.3200 | * | congestion | S3 | 1.2950 | ** | 50% ret of Jan-Jul rally | |
| R1 | 1.3175 | 7 Nov (w) high | S4 | 1.2900 | congestion |
Asterisk denotes strength of level
08:10 GMT - Little change, as flat overbought daily stochastics keep near-term sentiment cautious and prompt consolidation beneath the 1.3175 weekly high of 7 November. Daily readings continue to improve and oversold weekly stochastics are flattening, suggesting room for further tests higher towards congestion resistance at 1.3200. But the negative weekly Tension Indicator is expected to limit any break in renewed selling interest/consolidation beneath further congestion around 1.3250. Meanwhile, support remains at the 1.3100 break level, and should underpin any immediate setbacks. A close beneath here, however, would add weight to sentiment and delay any fresh gains, as prices then settle into consolidation above congestion support at 1.3000.