Chart GBP/USD Update: Extending gains
Consolidation above congestion support at 1.3400 has given way to anticipated gains
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3565~ | 9 Sep (m) high | S1 | 1.3400 | ** | congestion | ||
| R3 | 1.3550 | ** | 76.4% ret of Aug-Oct fall | S2 | 1.3350 | break level | ||
| R2 | 1.3500 | ** | congestion | S3 | 1.3300 | ** | congestion | |
| R1 | 1.3470 | ** | 61.8% ret of Aug-Oct fall | S4 | 1.3250 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - Consolidation above congestion support at 1.3400 has given way to anticipated gains, with prices currently pressuring levels around resistance at the 1.3470 Fibonacci retracement. Daily readings are positive and broader weekly charts continue to improve, suggesting room for further gains in the coming sessions. A break above here will further improve sentiment and extend mid-October gains continue towards congestion around 1.3500. Still higher is the 1.3550 retracement, where already overbought daily stochastics could prompt profit-taking/consolidation.
Meanwhile, a close back below 1.3400 would help to stabilise sentiment and prompt consolidation above 1.3350.