Chart GBP/USD Update: Further gains to remain limited
The break above 1.2800 has met renewed selling interest at the 1.2860 lows from 6-10 March
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3120 | ** | 76.4% ret of Sep-Jan fall | S1 | 1.2800 | ** | congestion | |
| R3 | 1.3000 | ** | range highs | S2 | 1.2700 | congestion | ||
| R2 | 1.2900 | ** | congestion | S3 | 1.2655 | ** | 50% ret of Jan-Apr rally | |
| R1 | 1.2860 | * | 6-10 Mar lows | S4 | 1.2600 | * | congestion |
Asterisk denotes strength of level
08:10 BST - The break above 1.2800 has met renewed selling interest at the 1.2860 lows from 6-10 March, with prices currently balanced above congestion support at 1.2800. Oversold daily stochastics are ticking higher, suggesting potential for consolidation around here, before the bearish daily Tension Indicator and deteriorating weekly charts prompt fresh losses. A break back below here will open up further congestion around 1.2700, with a close beneath here turning sentiment negative and extending April losses initially to the 1.2655 Fibonacci retracement. Meanwhile, resistance remains at 1.2860 and extends to 1.2900. This range should cap any fresh tests higher.