Chart GBP/USD Update: Minor pullback from the 1.2370 Fibonacci retracement
The test of resistance at the 1.2370 Fibonacci retracement is giving way to a pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2500 | * | break level | S1 | 1.2300 | * | break level | |
| R3 | 1.2455 | ** | 50% ret of Dec-Jan fall | S2 | 1.2200 | * | congestion | |
| R2 | 1.2400 | minor congestion | S3 | 1.2160 | 17 Jan low | |||
| R1 | 1.2370 | * | 38.2% ret of Dec-Jan fall | S4 | 1.2100 | ** | 13 Jan YTD low |
Asterisk denotes strength of level
08:10 GMT - The test of resistance at the 1.2370 Fibonacci retracement is giving way to a pullback, as intraday studies turn down, with prices currently pressuring support at 1.2300. Overbought daily stochastics are also coming under pressure, suggesting potential for a test beneath here. However, the rising daily Tension Indicator and improving weekly charts are expected to limit scope in renewed buying interest above congestion around 1.2200. Following corrective trade, fresh gains are looked for. But a close above 1.2370 is needed to improve price action and extend January gains beyond 1.2400 towards the 1.2455 retracement.