Chart GBP/USD Update: Limited tests higher
Sharp selling interest has all-but reached congestion support at 1.3300
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3550 | * | congestion | S1 | 1.3300 | ** | congestion | |
| R3 | 1.3500 | ** | congestion | S2 | 1.3275 | ** | 76.4% ret of Mar-May rally | |
| R2 | 1.3450 | break level | S3 | 1.3200 | ** | congestion | ||
| R1 | 1.3400 | ** | congestion | S4 | 1.3160~ | ** | 31 Mar YTD low |
Asterisk denotes strength of level
08:10 BST - Sharp selling interest has all-but reached congestion support at 1.3300, where rising intraday studies and flattening oversold daily stochastics are prompting a bounce. Focus is turning to congestion resistance at 1.3400. But the bearish daily Tension Indicator and negative weekly charts should prompt renewed selling interest towards here. A close above 1.3400, however, will help to stabilise sentiment and prompt consolidation within congestion beneath 1.3450. Following cautious/corrective trade, fresh losses are looked for. However, a close below support at the 1.3275 Fibonacci retracement is needed to turn sentiment negative and confirm continuation of May losses.