Chartbook: Chart GBP/USD: Choppy trade - long-term studies see room for further gains

Anticipated gains have posted a fresh year high at 1.3790, where unwinding overbought monthly stochastics prompted a pullback.

Prices have bounced from the 1.3140 low of August, as short-term studies improve, with focus expected to turn back to 1.3790.

Consolidation is expected to develop beneath here, before the rising monthly Tension Indicator prompts a break.

A close above 1.3790 will turn sentiment positive once again and extend gains from the 1.0355 multi-year low of September 2022 towards 1.4000.

Still higher is critical multi-year resistance within the 1.4250 year high of June 2021 and 1.4375 multi-year high of April 2018.

Overbought monthly stochastics could limit any initial tests of this range in consolidation/profit-taking, before improving longer-term charts prompt a break

and open up the 1.4500 multi-year Fibonacci retracement.

Meanwhile, immediate support is at congestion around 1.3500.

Rising weekly charts should limit any break beneath here in renewed buying interest above the 1.3140 monthly low of 12 May.

A close beneath here, if seen, would confirm a significant top in place and turn sentiment negative, as deeper losses then focus on congestion around 1.3000.