Chart GBP/USD Update: Potential for short-term reactions
Cautious trade is edging higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3434 | ** | 26 Sep 2024 (y) high | S1 | 1.3100 | minor congestion | ||
| R3 | 1.3330 | ** | 76.4% ret of 2021-2022 fall | S2 | 1.3000 | ** | range highs | |
| R2 | 1.3300 | range highs | S3 | 1.2900 | ** | congestion | ||
| R1 | 1.3200 | ** | break level | S4 | 1.2860 | * | 6-10 Mar lows |
Asterisk denotes strength of level
08:10 BST - Cautious trade is edging higher, with prices currently pressuring resistance at 1.3200. Falling intraday studies highlight potential for a minor pullback from here. But positive daily readings and rising weekly charts are expected to limit any tests lower in renewed buying interest above 1.3100. Following any cautious trade, fresh gains are looked for. A sustained break above 1.3200 will open up strong resistance at the 1.3300 range highs and the 1.3330 Fibonacci retracement. However, by-then overbought daily stochastics could prompt fresh profit-taking/consolidation towards here. Meanwhile, a close below 1.3100, if seen, will turn sentiment neutral and prompt consolidation above 1.3000.