Weekly Chart GBP/USD Update: Leaning lower - studies under pressure

Consolidation within the 1.3500 - 1.3550 range is giving way to a fresh pullback, with prices once again pressuring pressuring support at the 1.3475 Fibonacci retracement and congestion around 1.3500.

Daily stochastics and the daily Tension Indicator have turned bearish, highlighting a deterioration in sentiment and room for a deeper retracement in the coming week. A close below 1.3475 will add weight to sentiment and extend losses from the 1.3675~ current year high of 21 August towards the 1.3425 retracement. Just lower is congestion around 1.3400. But already oversold daily stochastics could limit any initial tests of this range in short-covering/consolidation, before deteriorating weekly charts prompt further losses.

Meanwhile, resistance is lowered to the 1.3550 break level.

A close above here, if seen, would help to stabilise price action and prompt fresh consolidation beneath congestion around 1.3650.

(A close above the 1.3870 multi-year high of 27 January would confirm continuation of gains from the 1.0360 year low of September 2022.)