Chart GBP/USD Update: Cautious trade - background studies rising
The anticipated test above congestion resistance at 1.3400 has met selling interest just beneath the 1.3450 Fibonacci retracement
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3500 | * | congestion | S1 | 1.3300 | * | congestion | |
| R3 | 1.3471 | * | 17 Oct (w) high | S2 | 1.3250 | * | congestion | |
| R2 | 1.3450 | ** | 61.8% ret of Sep-Nov fall | S3 | 1.3200 | * | congestion | |
| R1 | 1.3400 | ** | congestion | S4 | 1.3150 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - The anticipated test above congestion resistance at 1.3400 has met selling interest just beneath the 1.3450 Fibonacci retracement, with prices once again trading just below 1.3400. Intraday studies are under pressure, suggesting room for a deeper pullback. But positive daily readings and improving weekly charts are expected to limit scope in renewed buying interest towards congestion support at 1.3300. Following cautious/corrective trade, fresh gains are looked for. However, a close above 1.3450 is needed to turn sentiment positive and extend November gains initially to the 1.3471 weekly high of 17 October. Meanwhile, a break below 1.3300, if seen, will open up further congestion around 1.3250. But rising weekly charts should prompt renewed buying interest/consolidation towards here.