Chart GBP/USD Update: Balanced beneath 1.3400
The test of congestion resistance at 1.3400 is giving way to anticipated selling interest
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3600 | ** | congestion | S1 | 1.3300 | break level | ||
| R3 | 1.3500 | ** | congestion | S2 | 1.3233 | * | 23 Apr (w) low | |
| R2 | 1.3435 | ** | 26 Sep 2024 (y) high | S3 | 1.3200 | ** | break level | |
| R1 | 1.3400 | congestion | S4 | 1.3165 | ** | 38.2% ret of Apr rally |
Asterisk denotes strength of level
08:10 BST - The test of congestion resistance at 1.3400 is giving way to anticipated selling interest, as overbought intraday studies unwind, with prices currently trading around 1.3350. A drift towards support at 1.3300 cannot be ruled out. But rising daily readings and mixed/positive weekly charts are expected to prompt renewed buying interest towards here. Following cautious trade, fresh gains are looked for. Resistance remains at congestion around 1.3400, but a close above the 1.3435 year high of 26 September 2024 is needed to turn sentiment positive and confirm continuation of broad September 2022 gains. Meanwhile, a close below 1.3300, if seen, will add weight to sentiment and open up the 1.3233 weekly low of 23 April, where fresh buying interest is expected to appear.