Chart GBP/USD Update: Consolidating sharp gains - daily studies rising
Consolidation around 1.3250 has given way to a sharp bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3540 | ** | 50% ret of Jan-Mar fall | S1 | 1.3400 | ** | congestion | |
| R3 | 1.3500 | ** | congestion | S2 | 1.3300 | * | congestion | |
| R2 | 1.3465 | * | 38.2% ret of Jan-Mar fall | S3 | 1.3215 | ** | 76.4% ret of Nov-Jan rally | |
| R1 | 1.3450 | ** | congestion | S4 | 1.3200 | ** | congestion |
Asterisk denotes strength of level
08:10 GMT - Consolidation around 1.3250 has given way to a sharp bounce, with steady gains reaching resistance at congestion around 1.3450 and the 1.3465 Fibonacci retracement, before settling into consolidation above 1.3400. Daily readings have ticked higher once again and bearish weekly stochastics are flattening in oversold areas, suggesting room for a test above 1.3450/65. Focus will then turn to congestion around 1.3500. But the bearish weekly Tension Indicator and mixed/negative longer-term charts should limit any further gains in renewed selling interest beneath the 1.3540 retracement. Meanwhile, support is raised to congestion around 1.3400. A close beneath here would stabilise sentiment and prompt consolidation above further congestion around 1.3300.