Chart GBP/USD Update: Cautious trade - studies under pressure
Little change, as prices extend cautious trade just below congestion resistance at 1.3400
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3550 | * | congestion | S1 | 1.3300 | ** | congestion | |
| R3 | 1.3500 | ** | congestion | S2 | 1.3275 | ** | 76.4% ret of Mar-May rally | |
| R2 | 1.3450 | break level | S3 | 1.3250 | congestion | |||
| R1 | 1.3400 | ** | congestion | S4 | 1.3200 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Little change, as prices extend cautious trade just below congestion resistance at 1.3400. Oversold daily stochastics are unwinding, suggesting room for further consolidation around here. But the daily Tension Indicator remains negative and broader weekly charts are bearish, pointing to room for renewed tests lower. Support remains at congestion around 1.3300 and extends to the 1.3275 Fibonacci retracement, and should underpin any immediate tests, as daily stochastics once again become oversold. A close beneath here, however, would confirm continuation of May losses and open up 1.3200. Meanwhile, 1.3450 should cap any immediate tests above 1.3400.