Chart GBP/USD Update: Limited tests higher
Anticipated gains have extended to congestion resistance at 1.3000
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3100 | * | break level | S1 | 1.2950 | * | break level | |
| R3 | 1.3070 | * | 38.2% ret of Sep-Oct fall | S2 | 1.2900 | congestion | ||
| R2 | 1.3043/50 | 30 Oct (w) high; cong | S3 | 1.2865 | ** | 50% ret of Apr-Sep rally | ||
| R1 | 1.3000 | ** | congestion | S4 | 1.2843 | ** | 31 Oct (m) low |
Asterisk denotes strength of level
08:10 GMT - Anticipated gains have extended to congestion resistance at 1.3000, where short-term selling interest has appeared. The daily Tension Indicator has turned positive, suggesting potential for a test above here. But flat daily stochastics and mixed/negative weekly charts are expected to limit scope in renewed selling interest towards the 1.3043 weekly high of 30 October and congestion around 1.3050. Meanwhile, support is at the 1.2950 break level and extends to congestion around 1.2900. Flattening oversold weekly stochastics should limit any immediate pullback in consolidation within here, before deteriorating longer-term charts prompt further losses.