Chart GBP/USD Update: Choppy trade - studies under pressure
Cautious trade has given way to a spike to 1.3460~
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3600 | * | congestion | S1 | 1.3400 | ** | congestion | |
| R3 | 1.3550 | * | congestion | S2 | 1.3300 | ** | congestion | |
| R2 | 1.3500 | ** | congestion | S3 | 1.3275 | ** | 76.4% ret of Mar-May rally | |
| R1 | 1.3450 | break level | S4 | 1.3250 | congestion |
Asterisk denotes strength of level
08:10 BST - Cautious trade has given way to a spike to 1.3460~, before settling lower as overbought intraday studies turn down, unwinding negative divergence. Immediate focus is back on congestion support at 1.3400. But rising daily stochastics should limit any initial tests in consolidation, before the bearish daily Tension Indicator and deteriorating weekly charts prompt further losses. A later close beneath here will add weight to sentiment and open up further congestion around 1.3300. But a close below the 1.3275 would confirm continuation of May losses and open up 1.3200. Meanwhile, any fresh tests above resistance at 1.3450 should meet selling pressure towards congestion around 1.3500.