Chart GBP/USD Update: Cautious trade
The anticipated test above 1.2700 has been pushed back from 1.2725/30
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2900 | * | congestion | S1 | 1.2650 | minor congestion | ||
| R3 | 1.2850 | * | 38.2% ret of Sep-Nov fall | S2 | 1.2600 | * | congestion | |
| R2 | 1.2800 | ** | break level | S3 | 1.2500 | ** | congestion | |
| R1 | 1.2700 | break level | S4 | 1.2450 | * | congestion |
Asterisk denotes strength of level
08:05 GMT - The anticipated test above 1.2700 has been pushed back from 1.2725/30, as overbought intraday studies unwind, with prices once again trading below 1.2700. A drift lower towards congestion support at 1.2650 is possible, but mixed/positive daily readings are expected to limit any initial tests in further consolidation. Broader weekly charts are under pressure, however, highlighting potential for a later break to 1.2600. A close beneath here will add weight to sentiment and open up further congestion around 1.2500. However, by-then oversold daily stochastics could limit any initial tests in short-covering/consolidation. Meanwhile, any fresh tests above 1.2700 should meet renewed selling pressure beneath 1.2800.