Published: 2024-05-07T07:28:35.000Z
Chart GBP/USD Update: Consolidating - prices coming under pressure
Senior Technical Strategist
3
Anticipated gains have given way to consolidation
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 1.2700/10 | * | congestion; 9 Apr (m) high | S1 | 1.2500 | * | congestion | |
R3 | 1.2665 | * | 61.8% ret of Mar-Apr fall | S2 | 1.2450 | congestion | ||
R2 | 1.2650 | * | congestion | S3 | 1.2400 | * | congestion | |
R1 | 1.2600 | * | congestion, 50% ret | S4 | 1.2300 | ** | congestion, 22 Apr YTD low |
Asterisk denotes strength of level
08:10 BST - Anticipated gains have given way to consolidation, with prices currently balanced around 1.2550. Intraday studies are turning down and overbought daily stochastics are flattening, highlighting room for a drift lower towards congestion support at 1.2500. A break will open up further congestion around 1.2450, but the rising daily Tension Indicator and improving weekly charts are expected to limit any tests in fresh consolidation/buying interest. Meanwhile, resistance remains at 1.2600. A later close above here will improve price action and extend late-April gains towards the 1.2665 Fibonacci retracement.