Chart GBP/USD Update: Extending August gains
Cautious trade has given way to anticipated gains
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3800 | * | historic congestion | S1 | 1.3590/00 | ** | 24 Jul (w) high; cong | |
| R3 | 1.3788 | ** | 1 Jul YTD high | S2 | 1.3500 | ** | congestion | |
| R2 | 1.3681 | 4 Jul high | S3 | 1.3400 | * | congestion | ||
| R1 | 1.3635 | ** | 76.4% ret of Jul-Aug fall | S4 | 1.3333 | * | 3 Sep low |
Asterisk denotes strength of level
08:10 BST - Cautious trade has given way to anticipated gains, with the break above 1.3590/00 currently pressuring strong resistance at the 1.3635 Fibonacci retracement. Intraday studies have turned higher and daily readings are positive, highlighting room for a break above here and continuation of August gains towards the 1.3681 high of 4 July. Already overbought daily stochastics could limit any initial tests in consolidation, before the improving weekly Tension Indicator prompts a break. Negative monthly charts, however, should prompt fresh selling interest towards critical resistance at the 1.3788 current year high of 1 July. Meanwhile, a close back below 1.3590/00 will turn sentiment neutral and prompt consolidation above congestion support at 1.3500.