Chart GBP/USD Update: Limited scope above 1.3400
The test of congestion resistance at 1.3400 is giving way to anticipated consolidation
| 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 - The test of congestion resistance at 1.3400 is giving way to anticipated consolidation, with prices currently trading around 1.3390. Intraday studies continue to track higher and oversold daily stochastics are unwinding, highlighting room for a fresh test above here. But the bearish daily Tension Indicator and negative weekly charts should limit scope in renewed consolidation beneath further congestion around 1.3450. Following cautious/corrective trade, fresh losses are looked for. Support is down to congestion around 1.3300. However, a close below the 1.3275 Fibonacci retracement is needed to turn sentiment negative and confirm continuation of May losses.