Chart GBP/USD Update: Limited tests higher
Anticipated losses have reached congestion support at 1.3300
| 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 - Anticipated losses have reached congestion support at 1.3300, where unwinding oversold intraday studies are prompting a corrective bounce. Oversold daily stochastics are also stabilising, suggesting room for a test of congestion resistance at 1.3400. But the negative daily Tension Indicator and bearish weekly charts should limit any tests in renewed selling interest. Following cautious/corrective trade, fresh losses are looked for. However, a close below the 1.3275 Fibonacci retracement is needed to confirm continuation of May losses and open up 1.3200. Meanwhile, a close above 1.3400 would help to stabilise sentiment and give way to consolidation beneath 1.3450.