Chart GBP/USD Update: Gains to remain limited
The test of support at the 1.2865 Fibonacci retracement has given way to a bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3043 | 30 Oct high | S1 | 1.2865 | ** | 50% ret of Apr-Sep rally | ||
| R3 | 1.3000 | ** | congestion | S2 | 1.2800 | ** | congestion | |
| R2 | 1.2950 | * | break level | S3 | 1.2735 | ** | 61.8% ret of Apr-Sep rally | |
| R1 | 1.2907 | * | 23 Oct (w) low | S4 | 1.2700 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - The test of support at the 1.2865 Fibonacci retracement has given way to a bounce, as oversold intraday studies unwind, with prices currently pressuring resistance at the 1.2907 weekly low of 23 October. A break towards the 1.2950 break level is possible, but negative daily readings and bearish weekly charts highlight a deterioration in sentiment and room for renewed selling interest towards here. Following corrective trade, lower levels are looked for. But a close below 1.2865 is needed to turn sentiment negative and extend late-September losses towards congestion around 1.2800. Still lower is the 1.2735 retracement.