Published: 2024-05-01T07:25:58.000Z
Chart GBP/USD Update: Leaning lower, but downside to remain limited
Senior Technical Strategist
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Cautious trade has given way to a break below 1.2500
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 1.2650 | * | congestion | S1 | 1.2450 | congestion | ||
R3 | 1.2600 | * | congestion, 50% ret | S2 | 1.2400 | * | congestion | |
R2 | 1.2569 | 29 Apr high | 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
08:05 BST - Cautious trade has given way to a break below 1.2500, with prices currently finding support above 1.2450, as oversold intraday studies flatten. Rising daily stochastics are flattening in overbought areas, suggesting potential for a test beneath here. But the rising daily Tension Indicator and improving weekly charts are expected to prompt fresh buying interest towards further congestion around 1.2400. Meanwhile, resistance is at congestion around 1.2500. A close above here would turn sentiment neutral once again and prompt fresh consolidation beneath resistance at the 1.2569 high of 29 April and 1.2600.