Chart GBP/USD Update: Leaning lower
Consolidation is giving way to the anticipated break below 1.2500
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 1.2650 | * | congestion | S1 | 1.2450 | congestion | ||
R3 | 1.2600 | * | congestion, 50% ret of Mar-Apr fall | S2 | 1.2400 | * | congestion | |
R2 | 1.2560 | congestion | S3 | 1.2300 | ** | congestion, 22 Apr YTD low | ||
R1 | 1.2500 | * | congestion | S4 | 1.2240 | ** | 76.4% ret of Oct-Mar rally |
Asterisk denotes strength of level
08:10 BST - Consolidation is giving way to the anticipated break below 1.2500, as intraday studies continue to track lower, with prices currently trading around 1.2480. Immediate focus is turning to congestion support at 1.2450, but unwinding overbought daily stochastics and a tick lower in the daily Tension Indicator highlight potential for a further break and deeper losses towards further congestion around 1.2400. However, broader weekly charts are mixed/positive, suggesting any immediate tests of here could give way to consolidation. Meanwhile, a close back above 1.2500 would turn sentiment neutral and prompt consolidation beneath intraday congestion around 1.2560.