Chart GBP/USD Update: Limited USD-driven gains
The anticipated test of support at the 1.3140 monthly low of 12 May has given way to a sharp USD-driven bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3500 | ** | congestion | S1 | 1.3140 | ** | 12 May (m) low | |
| R3 | 1.3400 | * | congestion | S2 | 1.3000 | ** | break level | |
| R2 | 1.3370 | * | 23 Jun (m) low | S3 | 1.2945 | * | 50% ret of Jan-Jul rally | |
| R1 | 1.3300 | * | congestion | S4 | 1.2900 | * | congestion |
Asterisk denotes strength of level
15:25 BST - The anticipated test of support at the 1.3140 monthly low of 12 May has given way to a sharp USD-driven bounce, with prices currently consolidating the test of congestion resistance at 1.3300. Intraday studies have turned higher and oversold daily stochastics are flattening, suggesting room for a test above here. But the bearish daily Tension Indicator and negative weekly charts should limit scope in renewed selling interest towards the 1.3370 monthly low of 23 June and congestion around 1.3400. Meanwhile, a close below 1.3140, not yet seen, will turn sentiment negative and extend July losses towards 1.3000.