Weekly Chart GBP/USD Update: Extending gains

Choppy trade has given way to a sharp bounce from congestion support at 1.3300,

with prices currently pressuring resistance within the 1.3470 Fibonacci retracement and congestion around 1.3500.

Weekly stochastics continue to rise and the flat weekly Tension Indicator is also turning higher, suggesting an improvement in sentiment and room for continuation of gains from the 1.3137/40 current year lows of 24 June - 14 October. A close above 1.3500 will improve price action and open up the 1.3550 retracement. But negative weekly charts could limit any initial tests in profit-taking/consolidation. Continuation beyond here, however, will open up 1.3600, where more significant selling interest is expected to appear.

Meanwhile, support is raised to congestion around 1.3400.

Rising daily stochastics and the positive daily Tension Indicator should limit any tests beneath here in fresh consolidation/range extension above further congestion around 1.3300. However, a close below 1.3300, if seen, will add weight to sentiment and prompt a deeper pullback towards further congestion around 1.3200, where more significant buying interest is expected to appear.