Chart GBP/USD Update: Consolidating - strong support at 1.2860
Little change, as mixed intraday studies keep near-term sentiment cautious
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3200 | * | break level | S1 | 1.2900 | ** | congestion | |
| R3 | 1.3100/20 | * | cong; 76.4% ret of Sep-Jan fall | S2 | 1.2860 | * | 6-10 Mar lows | |
| R2 | 1.3050 | * | break level | S3 | 1.2800 | ** | congestion | |
| R1 | 1.3000 | ** | break level | S4 | 1.2700 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation above congestion support at 1.2900. Daily readings continue track lower, however, and overbought weekly stochastics are turning down, suggesting room for a test beneath here. Focus will then turn to the 1.2860 lows from 6-10 March, where the rising weekly Tension Indicator is expected to prompt renewed buying interest. A close beneath here, if seen, will turn sentiment negative and give way to a deeper correction towards 1.2800. Meanwhile, resistance remains at 1.3000. A close above here, not yet seen, will improve price action and extend January gains beyond 1.3050 towards the 1.3120 Fibonacci retracement. Already overbought weekly stochastics could limit any initial tests in profit-taking/consolidation.