Chart GBP/USD Update: Consolidating - background studies under pressure
Anticipated minor tests higher have not been seen
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | ** | 76.4% ret of Jan-Jun fall | S1 | 1.3500 | * | congestion | |
| R3 | 1.3657 | ** | 1 May (m) high | S2 | 1.3475 | ** | 50% ret of Jul-Aug rally | |
| R2 | 1.3600 | ** | congestion | S3 | 1.3425 | ** | 61.8% ret of Jul-Aug rally | |
| R1 | 1.3550 | * | congestion | S4 | 1.3400 | ** | congestion |
Asterisk denotes strength of level
08:10 BST - Anticipated minor tests higher have not been seen, as consolidation gave way to a test of support within the 1.3475 - 1.3500 range before settling into fresh consolidation around 1.3520. Oversold daily stochastics continue to rise, suggesting room for fresh tests higher. But the bearish daily Tension Indicator and mixed/negative weekly charts should limit scope in renewed selling interest towards congestion resistance at 1.3550.
Following cautious trade, fresh losses are looked for. Support remains at congestion around 1.3500. But a close below the 1.3475 Fibonacci retracement will add weight to sentiment and extend late-August losses towards congestion around 1.3400 and the 1.3425 retracement. Already oversold daily stochastics could limit any initial tests in short-covering/consolidation.