Chart GBP/USD Update: Consolidating test of 1.3000
Consolidation around resistance at 1.3000 is giving way to a drift lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3200 | * | break level | S1 | 1.2900 | ** | congestion | |
| R3 | 1.3100/20 | * | cong; 76.4% ret of Sep-Jan fall | S2 | 1.2860 | * | 6-10 Mar lows | |
| R2 | 1.3050 | * | break level | S3 | 1.2800 | ** | congestion | |
| R1 | 1.3000 | ** | break level | S4 | 1.2700 | * | congestion |
Asterisk denotes strength of level
08:10 GMT - Consolidation around resistance at 1.3000 is giving way to a drift lower, as intraday studies turn down, with prices currently trading around 1.2975. Overbought daily stochastics have flattened once again and the daily Tension Indicator is turning down, highlighting room for a deeper pullback in the coming sessions. Support remains at congestion around 1.2900, but rising weekly charts should limit any tests beneath here in renewed buying interest/consolidation above the 1.2860 lows from early March. Following corrective trade, fresh gains are looked for. A later close above 1.3000 will open up 1.3050. Continuation towards the 1.3120 Fibonacci retracement cannot be ruled out, but already overbought daily and weekly stochastics should prompt profit-taking towards here.