Chart GBP/USD Update: Poised to extend July losses
Little change, as cautious trade extends pressure on support at the 1.3100~ monthly low of 31 October
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3300 | * | congestion | S1 | 1.3100~ | * | 31 Oct (m) low | |
| R3 | 1.3250 | * | congestion | S2 | 1.3000 | * | congestion | |
| R2 | 1.3200 | * | congestion | S3 | 1.2950 | ** | 50% ret of Jan-Jul rally | |
| R1 | 1.3140~ | ** | May-Aug (m) range lows | S4 | 12900 | congestion |
Asterisk denotes strength of level
08:10 GMT - Little change, as cautious trade extends pressure on support at the 1.3100~ monthly low of 31 October. Flat oversold daily stochastics are turning lower once again and the daily Tension Indicator is bearish, highlighting room for a break and extension of July losses towards congestion around 1.3000. Negative weekly charts point to potential for continuation down to the 1.2950 Fibonacci retracement, where oversold daily stochastics could prompt short-covering/consolidation. Meanwhile, resistance remains at the 1.3140~ monthly range lows from May - August. A close above here would help to stabilise price action and prompt consolidation beneath congestion around 1.3200.