Chart GBP/USD Update: Consolidating sharp gains - background studies remain positive
Anticipated gains have broken above 1.3600 to reach 1.3630
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3800 | ** | congestion | S1 | 1.3600 | ** | congestion | |
| R3 | 1.3733 | 4 Feb (w) high | S2 | 1.3558 | ** | 15 Jul (m) high | ||
| R2 | 1.3700 | ** | congestion, 76.4% ret | S3 | 1.3500 | * | congestion | |
| R1 | 1.3657 | ** | 1 May (m) high | S4 | 1.3450 | congestion |
Asterisk denotes strength of level
08:10 BST - Anticipated gains have broken above 1.3600 to reach 1.3630, before settling into consolidation above 1.3600 as intraday studies turn mixed. The rising daily Tension Indicator highlights room for continuation of late-June gains towards the 1.3657 monthly high of 1 May. But already flat overbought daily stochastics could limit any initial tests in fresh consolidation, before positive weekly charts prompt a break. A close above here will improve sentiment and open up a test of strong resistance at 1.3700.
Meanwhile, a close back below congestion support at 1.3600 will turn sentiment neutral and give way to consolidation above the 1.3558 monthly high of 15 July.