Chart GBP/USD Update: Consolidating gains - studies continue to rise
Anticipated gains have tested above resistance at the 1.3340 Fibonacci retracement and the 1.3360 range lows
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3470 | ** | 61.8% ret of Aug-Oct fall | S1 | 1.3300 | ** | congestion | |
| R3 | 1.3400/05 | ** | congestion; 50% ret | S2 | 1.3250 | * | congestion | |
| R2 | 1.3360/70~ | * | range lows; 16 Oct (w) high | S3 | 1.3200 | ** | cong, 38.2% ret | |
| R1 | 1.3340 | * | 38.2% ret of Aug-Oct fall | S4 | 1.3137/40 | ** | 24 Jun-14 Oct YTD lows |
Asterisk denotes strength of level
08:10 BST - Anticipated gains have tested above resistance at the 1.3340 Fibonacci retracement and the 1.3360 range lows, with prices reaching 1.3370~ before settling back into consolidation around 1.3320 as overbought intraday studies unwind. Short-term consolidation is highlighted, before rising daily readings prompt further gains. A close above 1.3340 will help to improve sentiment and extend mid-October gains towards strong resistance at 1.3400/05. But mixed/negative weekly charts should prompt renewed profit-taking/consolidation towards here.
Meanwhile, support remains at congestion around 1.3300. A close back beneath here, if seen, will turn sentiment neutral once again and put prices into range extension, centred around 1.3250.