Chart GBP/USD Update: Further gains to remain limited
Anticipated corrective gains are meeting selling interest around 1.3375
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3550 | congestion | S1 | 1.3300 | * | congestion | ||
| R3 | 1.3500 | ** | congestion | S2 | 1.3215 | ** | 76.4% ret of Nov-Jan rally | |
| R2 | 1.3450 | ** | congestion | S3 | 1.3200 | ** | congestion | |
| R1 | 1.3400 | ** | congestion | S4 | 1.3150 | congestion |
Asterisk denotes strength of level
08:10 GMT - Anticipated corrective gains are meeting selling interest around 1.3375, as overbought intraday studies unwind, with prices currently trading around 1.3350. Daily readings continue to rise, suggesting room for a fresh test higher. But negative weekly charts and deteriorating longer-term readings should limit scope in renewed selling interest towards congestion resistance at 1.3400. Following cautious/corrective trade, fresh losses are looked for. A break below congestion support at 1.3300 will add weight to sentiment. But a further close below 1.3200/15 is needed to turn sentiment negative and extend late-January losses towards further congestion around 1.3150.