Chart GBP/USD Update: Under pressure
Cautious trade has given way to anticipated selling interest
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3500 | ** | congestion | S1 | 1.3300 | ** | congestion | |
| R3 | 1.3470 | ** | 61.8% ret of Aug-Oct fall | S2 | 1.3250 | * | congestion | |
| R2 | 1.3400/05 | ** | congestion; 50% ret | S3 | 1.3200 | ** | cong, 38.2% ret | |
| R1 | 1.3350 | break level | S4 | 1.3137/40 | ** | 24 Jun - 14 Oct YTD lows |
Asterisk denotes strength of level
08:10 GMT - Cautious trade has given way to anticipated selling interest, as intraday studies turn down, with the break below 1.3350 adding weight to sentiment and putting focus on congestion support at 1.3300. Overbought daily stochastics are unwinding and the positive daily Tension Indicator is flattening, highlighting room for a break. But mixed/positive weekly chart should limit initial scope in renewed buying interest/consolidation above further congestion around 1.3250.
Meanwhile, a close back above 1.3350, not yet seen, will help to stabilise price action and prompt consolidation beneath strong resistance at 1.3400/05. A close above here is needed to turn sentiment positive and extend mid-October gains initially towards the 1.3470 retracement.