Chart GBP/USD Update: Gains to remain limited - background under pressure
Anticipated minor gains have reached congestion resistance at 1.3500
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | break level | S1 | 1.3400 | * | congestion | ||
| R3 | 1.3650 | congestion | S2 | 1.3370 | * | 23 Jun (m) low | ||
| R2 | 1.3600 | * | congestion | S3 | 1.3300 | * | congestion | |
| R1 | 1.3500 | ** | congestion | S4 | 1.3250 | * | congestion lows |
Asterisk denotes strength of level
08:10 BST - Anticipated minor gains have reached congestion resistance at 1.3500, where unwinding overbought intraday studies are prompting a drift down to 1.3470. Daily stochastics continue to rise, unwinding oversold areas, highlighting room for a test above 1.3500. But the negative daily Tension Indicator and bearish weekly charts should limit any fresh breaks in renewed selling interest beneath further congestion around 1.3600. Following cautious trade, fresh losses are looked for. Support is at congestion around 1.3400 and extends to the 1.3370 monthly low of 23 June. A close beneath here is needed to confirm a near-term top in place at the 1.3788 current year high of 1 July, as prices then extend losses below the rising January trendline, initially opening up a test of congestion around 1.3300.