Weekly Chart GBP/USD Update: Reactions before January losses resume
Anticipated losses have reached congestion support at 1.3200, where a tick higher in oversold daily stochastics is prompting short-covering and consolidation
Anticipated losses have reached congestion support at 1.3200, where a tick higher in oversold daily stochastics is prompting short-covering and consolidation.
A bounce towards congestion resistance at 1.3300 is possible. But the negative daily Tension Indicator and bearish weekly charts should limit any break in renewed selling interest towards resistance at the 1.3350 range lows. A close above here, if seen, will help to stabilise sentiment and prompt consolidation beneath 1.3400.
Following cautious/corrective trade, fresh losses are looked for.
Support is at the 1.3140 monthly low of 24 June.
A later close beneath here will add weight to sentiment and extend January losses following the break below the multi-month pennant/triangle pattern. Focus will turn to strong support at the 1.2985 Fibonacci retracement and congestion around 1.3000. Bearish weekly charts and mixed/negative longer-term readings highlight room for a later break beneath here. The 1.2850 congestion base from March 2025 will then attract, ahead of the 1.2775 retracement.