Chart GBP/USD Update: Extending losses
Cautious trade has given way to anticipated losses
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2650 | minor congestion | S1 | 1.2332 | * | 23 Apr low | ||
| R3 | 1.2600 | * | congestion | S2 | 1.2300 | ** | 22 Apr (y) low | |
| R2 | 1.2500 | * | congestion | S3 | 1.2200 | * | congestion | |
| R1 | 1.2450 | * | congestion | S4 | 1.2100 | * | November 2023 (m) low |
Asterisk denotes strength of level
15:15 GMT - Cautious trade has given way to anticipated losses, with the break below 1.2500 adding weight to sentiment. Intraday studies have turned down and daily readings are also leaning lower, highlighting room for continuation towards the 1.2332 low of 23 April. Just lower is the 1.2300 year low of 22 April, but oversold daily stochastics are expected to limit any initial tests of this area in consolidation. Broader weekly charts are under pressure, however, pointing to room for a later break and extension of September losses. Meanwhile, resistance is at congestion around 1.2450 and extends to 1.2500. A close above here is needed to turn sentiment neutral and prompt fresh consolidation.