Chart GBP/USD Update: Limited tests higher
Consolidation around 1.3200 is giving way to a test higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3400 | ** | congestion | S1 | 1.3200 | ** | congestion | |
| R3 | 1.3350 | break level | S2 | 1.3140 | 24 Jun YTD low | |||
| R2 | 1.3300 | ** | congestion | S3 | 1.3100 | * | congestion | |
| R1 | 1.3250 | intraday break level | S4 | 1.3000/10 | ** | congestion; 4-5 Nov (m) low |
Asterisk denotes strength of level
08:10 BST - Consolidation around 1.3200 is giving way to a test higher, as intraday studies rise, with prices currently trading around 1.3220. Oversold daily stochastics are unwinding the daily Tension Indicator is also improving, suggesting room for a test of resistance at 1.3250. A break above here will improve sentiment and open up congestion around 1.3300. But bearish weekly charts should prompt renewed selling interest towards here and limit any tests in consolidation. Following cautious/corrective trade, fresh losses are looked for. Support is at 1.3200. But a close below the 1.3140 current year low of 24 June will add weight to sentiment and put initial focus on congestion around 1.3100.