Chart GBP/USD Update: Consolidating - limited tests higher
The anticipated retest of resistance at 1.2700 is giving way to further consolidation
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2800 | * | congestion | S1 | 1.2650 | minor congestion | ||
| R3 | 1.2772 | * | 2 Feb (w) high | S2 | 1.2600 | * | congestion | |
| R2 | 1.2760 | * | intraday congestion | S3 | 1.2525 | ** | 38.2% ret of Oct-Dec rally | |
| R1 | 1.2700 | * | break level | S4 | 1.2500 | * | congestion |
Asterisk denotes strength of level
08:05 GMT - The anticipated retest of resistance at 1.2700 is giving way to further consolidation, as intraday studies turn down and keep near-term sentiment cautious. The daily Tension Indicator remains positive, suggesting potential for a move back to 1.2700. However, flattening overbought daily stochastics and negative weekly charts should limit any break in fresh selling interest beneath the 1.2772 weekly high of 2 February. Meanwhile, support remains 1.2650. A later break beneath here will open up congestion around 1.2600, with further slippage adding weigh to sentiment and putting focus on the 1.2525 Fibonacci retracement.