Chart GBP/USD Update: Smart bounce
Cautious trade has given way to a sharp bounce to congestion resistance at 1.3400
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3500/10 | ** | congestion; 25 May (w) high | S1 | 1.3300 | ** | congestion | |
| R3 | 1.3483 | * | 5 Jun (m) high | S2 | 1.3250 | intraday break level | ||
| R2 | 1.3450 | ** | congestion | S3 | 1.3200 | ** | congestion | |
| R1 | 1.3400 | ** | congestion | S4 | 1.3140 | 24 Jun YTD low |
Asterisk denotes strength of level
08:10 BST - Cautious trade has given way to a sharp bounce to congestion resistance at 1.3400, where unwinding overbought intraday studies and flat overbought daily stochastics are prompting consolidation. The daily Tension Indicator continues to rise and broader weekly charts are mixed/positive, pointing to room for further gains in the coming sessions. A break above 1.3400 will help to improve sentiment and extend late-June gains towards further congestion around 1.3450. However, overbought daily stochastics could prompt renewed selling interest towards here. Meanwhile, support remains down to congestion around 1.3300 and should underpin any immediate setbacks.