Chart GBP/USD Update: Leaning lower
Cautious trade around 1.3500 is giving way to a drift lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3660 | * | congestion | S1 | 1.3475 | * | 20 Apr low | |
| R3 | 1.3600 | ** | congestion; 61.8% ret | S2 | 1.3450 | break level | ||
| R2 | 1.3550 | * | congestion | S3 | 1.3400 | ** | congestion | |
| R1 | 1.3500 | ** | congestion | S4 | 1.3350 | * | congestion |
Asterisk denotes strength of level
08:10 BST - Cautious trade around 1.3500 is giving way to a drift lower, as intraday studies turn down, with prices approaching support at the 1.3475 low of 20 April. Overbought daily stochastics are unwinding and the daily Tension Indicator has turned bearish, highlighting room for a test beneath here towards 1.3450. However, rising weekly charts should limit any deeper losses in renewed buying interest towards congestion around 1.3400. Meanwhile, resistance is lowered to congestion around 1.3500. A close back above here will help to stabilise price action and prompt consolidation beneath further congestion around 1.3550. A further close above stronger resistance at 1.3600 is needed to turn sentiment positive and extend late-March gains towards congestion around 1.3660.