Chart GBP/USD Update: Room for a minor test higher
Cautious trade has given way to a test higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3700 | minor congestion | S1 | 1.3500 | ** | congestion | ||
| R3 | 1.3650 | * | break level | S2 | 1.3440/50 | ** | 50% ret; congestion | |
| R2 | 1.3600 | * | congestion | S3 | 1.3400 | ** | congestion | |
| R1 | 1.3535 | 23 Feb high | S4 | 1.3340 | ** | 61.8% ret of Nov-Jan rally |
Asterisk denotes strength of level
08:10 GMT - Cautious trade has given way to a test higher, as intraday studies tick up, with prices currently consolidating the test of the 1.3535 high of 23 February. Oversold daily stochastics are rising and the bearish daily Tension Indicator is showing early signs of improvement, suggesting room for a test above 1.3535. Focus will then turn to congestion around 1.3600. But negative weekly charts should prompt renewed selling interest towards here. Meanwhile, support is raised to congestion around 1.3500. But a close below support at the 1.3440 Fibonacci retracement and congestion around 1.3450 would add weight to sentiment and extend late-January losses towards congestion around 1.3400. Continuation towards the 1.3340 retracement cannot be ruled out.