Chart GBP/USD Update: Limited tests higher - background under pressure
Consolidation above congestion support at 1.3200 is giving way to a drift higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3400 | ** | congestion | S1 | 1.3200 | * | congestion | |
| R3 | 1.3350 | congestion | S2 | 1.3160~ | * | 31 Mar YTD low | ||
| R2 | 1.3300 | * | congestion | S3 | 1.3150 | * | congestion | |
| R1 | 1.3250 | congestion | S4 | 1.3100 | * | congestion |
Asterisk denotes strength of level
08:10 BST - Consolidation above congestion support at 1.3200 is giving way to a drift higher, as intraday studies rise, with prices currently consolidating the test of congestion resistance at 1.3250. Negative daily stochastics are ticking higher, suggesting room for a retest above here. But the bearish daily Tension Indicator and negative weekly charts should limit scope in renewed selling interest towards further congestion around 1.3300. Following cautious/corrective trade, fresh losses are looked for. However, a close below the 1.3160 current year low of 31 March is needed to turn sentiment negative and extend late-January losses towards congestion around 1.3100.