Chart GBP/USD Update: Room for lower
Cautious trade has to anticipated losses
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3471 | 17 Oct (w) high | S1 | 1.3200 | * | congestion | ||
| R3 | 1.3400 | * | congestion | S2 | 1.3140~ | ** | May-Aug (m) range lows | |
| R2 | 1.3300 | * | congestion | S3 | 1.3000 | * | congestion | |
| R1 | 1.3250 | * | congestion | S4 | 12950 | ** | 50% ret of Jan-Jun rally |
Asterisk denotes strength of level
08:15 GMT - Cautious trade has to anticipated losses, with steady selling interest putting focus on congestion support at 1.3200. Intraday studies are oversold, suggesting room for consolidation above here. But daily readings are under pressure and broader weekly charts are mixed/negative, pointing to room for a later break towards critical support at the 1.3140~ May-August range lows. A close beneath here would turn sentiment negative and confirm a deeper correction of the January-June rally. Meanwhile, resistance is lowered to congestion around 1.3250. A close above here, if seen, would help to stabilise price action and prompt consolidation beneath further congestion around 1.3300.