Published: 2024-05-16T07:29:02.000Z
Chart GBP/USD Update: Strong resistance at the 1.2755 Fibonacci retracement
Senior Technical Strategist
3
Late-April gains have reached congestion resistance at 1.2700
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 1.2894 | ** | 8 Mar YTD high | S1 | 1.26000 | * | congestion | |
R3 | 1.2800 | ** | congestion | S2 | 1.2560 | * | congestion | |
R2 | 1.2755 | ** | 76.4% ret of Mar-Apr fall | S3 | 1.2500 | * | congestion | |
R1 | 1.2700 | * | congestion | S4 | 1.2450 | congestion |
Asterisk denotes strength of level
08:10 BST - Late-April gains have reached congestion resistance at 1.2700, where unwinding overbought intraday studies are prompting anticipated short-term reactions. The daily Tension Indicator continues to rise, suggesting potential for a test above here. But flattening overbought daily stochastics are expected to limit immediate scope to the 1.2755 Fibonacci retracement. Meanwhile, support remains at congestion around 1.2600. An unexpected close beneath here will turn price action neutral and prompt consolidation above further congestion around 1.2560.