Chart GBP/USD Update: Consolidating
Consolidation following the test of resistance at the 1.3590 weekly high of 24 July and congestion around 1.3600 has given way to a pullback to 1.3520~
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3788 | ** | 1 Jul YTD high | S1 | 1.3500 | ** | congestion | |
| R3 | 1.3752 | 2 Jul high | S2 | 1.3400 | * | congestion | ||
| R2 | 1.3681 | 4 Jul high | S3 | 1.3300 | * | congestion | ||
| R1 | 1.3590/00 | ** | 24 Jul (w) high; cong | S4 | 1.3200 | * | congestion |
Asterisk denotes strength of level
08:10 BST - Consolidation following the test of resistance at the 1.3590 weekly high of 24 July and congestion around 1.3600 has given way to a pullback to 1.3520~, before edging higher once again into fresh consolidation around 1.3550. Overbought daily stochastics are unwinding, suggesting room for a fresh test lower towards congestion support at 1.3500. A break will add weight to sentiment and open up congestion support at 1.3400. But the rising daily Tension Indicator and mixed weekly charts should limit any tests in renewed consolidation. Meanwhile, a close above1.3590/00, if seen, will improve sentiment and open up the 1.3681 high of 4 July, where fresh consolidation is expected to appear.