Chart GBP/USD Update: Consolidating - room for a minor test higher
Little change, as prices extend cautious trade around congestion resistance at 1.3550
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | 76.4% ret of Jan-Jun fall | S1 | 1.3500 | * | congestion | |
| R3 | 1.3657 | ** | 1 May (m) high | S2 | 1.3475 | ** | 50% ret of Jul-Aug rally | |
| R2 | 1.3600 | ** | congestion | S3 | 1.3425 | ** | 61.8% ret of Jul-Aug rally | |
| R1 | 1.3550 | * | congestion | S4 | 1.3400 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Little change, as prices extend cautious trade around congestion resistance at 1.3550. Intraday studies are mixed/positive and oversold daily stochastics are unwinding, suggesting room for a fresh test above here. Focus will then turn to further congestion around 1.3600. However, the flat daily Tension Indicator and deteriorating weekly charts should prompt renewed consolidation beneath here.
Following cautious trade, lower levels are looked for. Support remains at congestion around 1.3500. But a close below the 1.3475 Fibonacci retracement will add weight to sentiment and extend late-August losses towards congestion around 1.3400 and the 1.3425 retracement. By-then oversold daily stochastics could limit any initial tests in short-covering/consolidation.