Chart GBP/USD Update: Room for lower
Cautious trade around congestion resistance at 1.3400 has given way to anticipated fresh selling interest
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3600 | * | congestion | S1 | 1.3300 | * | congestion | |
| R3 | 1.3500 | ** | congestion | S2 | 1.3287 | * | 9 Dec (w) low | |
| R2 | 1.3450 | ** | congestion | S3 | 1.3200/15 | ** | congestion; 76.4% ret | |
| R1 | 1.3400 | ** | congestion | S4 | 1.3180 | 2 Dec (m) low |
Asterisk denotes strength of level
08:10 GMT - Cautious trade around congestion resistance at 1.3400 has given way to anticipated fresh selling interest, as intraday studies continue to track lower, with the break below the 1.3440 Fibonacci retracement opening up support at the 1.3287 weekly low of 9 December and congestion around 1.3300. Daily readings are falling and broader weekly charts are also bearish, highlighting room for a break beneath here and continuation of late-January losses towards congestion around 1.3200 and the 1.3215 retracement. However, already oversold daily stochastics are expected to limit any initial tests of here in short-covering/consolidation. Meanwhile, resistance remains at 1.3400. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 1.3450.