Chart GBP/USD Update: Short-term consolidation - studies remain under pressure
Minor consolidation has given way to anticipated losses
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3550 | * | range highs | S1 | 1.3345 | ** | 61.8% ret of Jun-Aug rally | |
| R3 | 1.3500 | * | congestion | S2 | 1.3300 | ** | congestion | |
| R2 | 1.3465 | * | recent lows | S3 | 1.3270/73 | ** | 76.4% ret; 28 Jul (w) low | |
| R1 | 1.3400 | ** | congestion | S4 | 1.3200 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Minor consolidation has given way to anticipated losses, with prices testing below the 1.3345 Fibonacci retracement, before settling into consolidation around 1.3365. Intraday studies are rising and oversold daily stochastics are flattening, suggesting room for a minor bounce towards congestion resistance at 1.3400. But any immediate tests are expected to be limited in renewed selling interest, as broader weekly charts remain under pressure. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath 1.3465.
Following cautious/corrective trade, fresh losses are looked for. A close below 1.3345 will add weight to sentiment and extend losses from the 1.3675 monthly high of 21 August towards congestion around 1.3300. Just beneath here is 1.3270/73, where short-covering/consolidation is expected to appear.