Chart GBP/USD Update: Sentiment improving
Cautious trade is giving way to the anticipated move higher
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 1.2650 | * | congestion | S1 | 1.2400 | * | congestion | |
R3 | 1.2600 | * | congestion, 50% ret | S2 | 1.2300 | * | congestion, 22 Apr YTD low | |
R2 | 1.2530 | * | 38.2% ret of Mar-Apr fall | S3 | 1.2240 | ** | 76.4% ret of Oct-Mar rally | |
R1 | 1.2500/18 | ** | congestion; 5 Feb (m) low | S4 | 1.2200 | * | congestion |
Asterisk denotes strength of level
08:05 BST - Cautious trade is giving way to the anticipated move higher, with prices reaching resistance at congestion around 1.2500 and the 1.2518 monthly low of 5 February. Intraday studies are rising and daily readings continue to improve, highlighting a positive tone and room for further gains in the coming sessions. A close above here will further improve sentiment and extend gains towards the 1.2530 Fibonacci retracement. However, a tick higher in oversold weekly stochastics suggests room for extension beyond here towards 1.2600, Meanwhile, support remains at congestion around 1.2400. An unexpected close beneath here would add fresh weight to sentiment and put focus back on critical support at 1.2300.