Chart GBP/USD Update: Choppy trade - studies remain under pressure
Choppy trade has given way to the anticipated test of congestion resistance at 1.3400
| 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 - Choppy trade has given way to the anticipated test of congestion resistance at 1.3400, where unwinding overbought intraday studies are prompting a minor pullback towards 1.3375. Oversold daily stochastics are edging higher, suggesting room for a test above 1.3400. But the negative daily Tension Indicator and bearish weekly charts should limit any retests in renewed selling interest/consolidation. Following cautious/corrective trade, fresh losses are looked for. A later break below support at the 1.3345 Fibonacci retracement 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.
Meanwhile, a close above 1.3400, if seen, will help to stabilise price action and prompt consolidation beneath the 1.3465 recent lows.