Chart GBP/USD Update: Limited tests higher
Cautious trade has given way to a break higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3590 | ** | 24 Jul (w) high | S1 | 1.3300 | * | congestion | |
| R3 | 1.3500 | ** | congestion | S2 | 1.3200 | * | congestion | |
| R2 | 1.3400 | * | congestion | S3 | 1.3140 | ** | 12 May (m) low | |
| R1 | 1.3370 | * | 23 Jun (m) low | S4 | 1.3000 | ** | break level |
Asterisk denotes strength of level
08:10 BST - Cautious trade has given way to a break higher, with prices currently balanced around resistance at the 1.3370 monthly low of 23 June. Daily readings have turned higher and oversold weekly stochastics are flattening, suggesting an improvement in sentiment, and room for a test above here towards congestion around 1.3400. However, the weekly Tension Indicator is falling and longer-term charts are coming under pressure, suggesting any continuation beyond here should meet renewed selling interest towards 1.3500. Meanwhile, support is raised to congestion around 1.3300. Any initial tests beneath here are expected to give way to consolidation above further congestion around 1.3200.