Chart GBP/USD Update: Cautious trade - background under pressure
Anticipated minor gains have been pushed back from 1.3475
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | break level | S1 | 1.3400 | * | congestion | ||
| R3 | 1.3650 | congestion | S2 | 1.3370 | * | 23 Jun (m) low | ||
| R2 | 1.3600 | * | congestion | S3 | 1.3300 | * | congestion | |
| R1 | 1.3500 | ** | congestion | S4 | 1.3250 | * | congestion lows |
Asterisk denotes strength of level
08:10 BST - Anticipated minor gains have been pushed back from 1.3475, as intraday studies turn mixed, with prices reaching congestion support at 1.3400. A fresh bounce is developing, as oversold daily stochastics continue to rise. But the negative daily Tension Indicator and bearish weekly charts should prompt renewed selling interest towards 1.3500. Following cautious trade, fresh losses are looked for. However, a close below support at the 1.3370 monthly low of 23 June is needed to confirm a near-term top in place at the 1.3788 current year high of 1 July, as prices then extend losses below the rising January trendline, initially opening up a test of congestion around 1.3300.