Chart GBP/USD Update: Room for further gains
Cautious trade above congestion support at 1.3300 is giving way to a fresh test higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3470 | ** | 61.8% ret of Aug-Oct fall | S1 | 1.3300 | ** | congestion | |
| R3 | 1.3400/05 | ** | congestion; 50% ret | S2 | 1.3250 | * | congestion | |
| R2 | 1.3360/70~ | * | range lows; 16 Oct (w) high | S3 | 1.3200 | ** | cong, 38.2% ret | |
| R1 | 1.3340 | * | 38.2% ret of Aug-Oct fall | S4 | 1.3137/40 | ** | 24 Jun-14 Oct YTD lows |
Asterisk denotes strength of level
08:10 BST - Cautious trade above congestion support at 1.3300 is giving way to a fresh test higher, as mixed intraday studies tick higher, with prices currently retesting resistance at the 1.3340 Fibonacci retracement and the 1.3360 range lows. Daily stochastics and the daily Tension Indicator continue to rise, highlighting room for a test above here. Mid-October gains will then focus on strong resistance within congestion around 1.3400 and the 1.3405 retracement. But already overbought daily stochastics and mixed weekly charts should limit any initial tests in profit-taking/consolidation.
Meanwhile, support remains at 1.3300. A close back beneath here, if seen, will turn sentiment neutral once again and put prices into range extension, centred around 1.3250.