Chart GBP/USD Update: Consolidating - background studies rising
Little change, as mixed/negative intraday studies keep near-term sentiment cautious
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3500 | * | congestion | S1 | 1.3300 | * | congestion | |
| R3 | 1.3471 | * | 17 Oct (w) high | S2 | 1.3250 | * | congestion | |
| R2 | 1.3450 | ** | 61.8% ret of Sep-Nov fall | S3 | 1.3200 | * | congestion | |
| R1 | 1.3400 | ** | congestion | S4 | 1.3150 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - Little change, as mixed/negative intraday studies keep near-term sentiment cautious and extend consolidation beneath congestion resistance at 1.3400. Daily stochastics are flat in overbought areas and the positive daily Tension Indicator is flattening, suggesting room for a minor test lower. However, positive weekly charts are expected to limit scope in renewed buying interest above congestion support at 1.3300. Following cautious/corrective trade, fresh gains are looked for. However, a close above resistance at the 1.3450 Fibonacci retracement is needed to turn sentiment positive and extend November gains initially to the 1.3471 weekly high of 17 October. Meanwhile, a break below 1.3300, if seen, will open up further congestion around 1.3250. But rising weekly charts should prompt renewed buying interest/consolidation towards here.