Chart GBP/USD Update: Bounce back in consolidation
Anticipated tests lower have bounced smartly from congestion support at 1.2450
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 1.2665 | ** | 61.8% ret of Mar-Apr fall | S1 | 1.2500 | * | congestion | |
R3 | 1.2650 | * | congestion | S2 | 1.2450 | congestion | ||
R2 | 1.2600 | * | congestion, 50% ret of Mar-Apr fall | S3 | 1.2400 | * | congestion | |
R1 | 1.2560 | congestion | S4 | 1.2300 | ** | congestion, 22 Apr YTD low |
Asterisk denotes strength of level
08:10 BST - Anticipated tests lower have bounced smartly from congestion support at 1.2450, with the break above 1.2500 turning sentiment neutral. Focus is turning to congestion resistance at 1.2560, but already overbought intraday studies and mixed/negative daily readings are expected to limit any immediate break in fresh consolidation beneath stronger resistance at 1.2600. Broader weekly charts are mixed/positive, but a close above here is needed to turn sentiment positive and extend April gains towards the 1.2665 Fibonacci retracement. Meanwhile, a close back below 1.2500 would add weight to price action and open up a retest - and potential break - of 1.2450.