Published: 2024-12-16T08:24:32.000Z
Chart GBP/USD Update: Consolidation before prices continue lower
Senior Technical Strategist
1
The anticipated test of congestion support at 1.2600 is giving way to consolidation
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2850 | * | 38.2% ret of Sep-Nov fall | S1 | 1.2600 | * | congestion | |
| R3 | 1.2800 | ** | break level | S2 | 1.2500 | ** | congestion | |
| R2 | 1.2700 | break level | S3 | 1.2450 | * | congestion | ||
| R1 | 1.2650 | congestion | S4 | 1.2400 | * | break level |
Asterisk denotes strength of level
08:05 GMT - The anticipated test of congestion support at 1.2600 is giving way to consolidation, as oversold intraday studies unwind, with prices currently trading around 1.2635. A minor bounce is possible, but negative daily readings and a tick lower in broader weekly charts are expected to limit any break in renewed selling interest towards 1.2700. In the coming sessions, further losses are looked for. A later close below 1.2600 will add weight to price action and open up further congestion around 1.2500. However, by-then oversold daily stochastics could limit any initial tests in short-covering/consolidation.