Chart GBP/USD Update: Heightened volatility - limited scope above 1.3450/65
Choppy trade around congestion support at 1.3300 has given way to a sharp bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3540 | ** | 50% ret of Jan-Mar fall | S1 | 1.3400 | ** | congestion | |
| R3 | 1.3500 | ** | congestion | S2 | 1.3300 | * | congestion | |
| R2 | 1.3465 | * | 38.2% ret of Jan-Mar fall | S3 | 1.3250 | * | recent lows, congestion | |
| R1 | 1.3450 | ** | congestion | S4 | 1.3215 | ** | 76.4% ret of Nov-Jan rally |
Asterisk denotes strength of level
08:10 GMT - Choppy trade around congestion support at 1.3300 has given way to a sharp bounce, with prices reaching 1.3480~ before settling into further choppy trade above congestion support at 1.3400. Daily stochastics are flattening in overbought areas, suggesting room for further cautious trade around here. But the rising daily Tension Indicator highlights room for later fresh gains back to strong resistance at congestion around 1.3450 and the 1.3465 Fibonacci retracement. Beyond here is 1.3500. But negative weekly charts should limit any tests in renewed selling interest. Meanwhile, a break back below 1.3400 will open up 1.3300. But a further close below strong support at congestion around 1.3200 and the 1.3215 Fibonacci retracement is needed to turn sentiment negative and confirm continuation of late-January losses.