Chart GBP/USD Update: Higher in range
The test of congestion support at 1.2900 has met anticipated buying interest above the 1.2860 lows from 6-10 March
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3200 | * | break level | S1 | 1.2900 | ** | congestion | |
| R3 | 1.3100/20 | * | cong; 76.4% ret of Sep-Jan fall | S2 | 1.2860 | * | 6-10 Mar lows | |
| R2 | 1.3050 | * | break level | S3 | 1.2800 | ** | congestion | |
| R1 | 1.3000 | ** | break level | S4 | 1.2700 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - The test of congestion support at 1.2900 has met anticipated buying interest above the 1.2860 lows from 6-10 March, as oversold intraday studies unwind, with prices currently trading around 1.2955. A retest of resistance at 1.3000 cannot be ruled out. But negative daily readings should prompt consolidation around here, before rising weekly charts extend gains still further. A later close above here will open up 1.3050, with potential for continuation towards the 1.3120 Fibonacci retracement. Already overbought weekly stochastics could limit any initial tests in profit-taking/consolidation. Meanwhile, a close below 1.2860, if seen, will turn sentiment negative and give way to a deeper correction towards 1.2800.