Chart GBP/USD Update: Cautious trade
Cautious trade following the test of resistance at the 1.3590 weekly high of 24 July and congestion around 1.3600 has given way to a pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3788 | ** | 1 Jul YTD high | S1 | 1.3500 | ** | congestion | |
| R3 | 1.3681 | 4 Jul high | S2 | 1.3400 | * | congestion | ||
| R2 | 1.3635 | ** | 76.4% ret of Jul-Aug fall | S3 | 1.3333 | * | 3 Sep low | |
| R1 | 1.3590/00 | ** | 24 Jul (w) high; cong | S4 | 1.3300 | * | congestion |
Asterisk denotes strength of level
08:10 BST - Cautious trade following the test of resistance at the 1.3590 weekly high of 24 July and congestion around 1.3600 has given way to a pullback, with buying interest appearing just above congestion support at 1.3500. Rising daily readings are showing signs of flattening, and broader weekly charts are turning mixed/negative, suggesting a cautious tone and increased selling interest into any fresh gains towards 1.3590/00. In the coming sessions, consolidation is looked for, with support at 1.3500. A break beneath here will add weight to sentiment and open up further congestion around 1.3400, where renewed buying interest/consolidation is expected to appear.