Published: 2024-04-16T07:26:47.000Z
Chart GBP/USD Update: Another fresh year low - studies under pressure
Senior Technical Strategist
1
Cautious trade has given way to a break lower
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 1.2700/10 | * | break level; 9 Apr high | S1 | 1.2400 | * | congestion | |
R3 | 1.2650 | * | congestion | S2 | 1.2365 | ** | 61.8% ret of Oct-Mar rally | |
R2 | 1.2600 | * | congestion | S3 | 1.2300 | * | congestion | |
R1 | 1.2500/18 | ** | congestion; 5 Feb (m) low | S4 | 1.2240 | ** | 61.8% ret of Oct-Mar rally |
Asterisk denotes strength of level
08:05 BST - Cautious trade has given way to a break lower, with March losses posting a fresh 2024 year low just above congestion support at 1.2400. Intraday studies have turned mixed, suggesting room for a minor bounce. However, daily readings continue to track lower and broader weekly charts are under pressure, highlighting potential difficulty sustaining any initial tests of 1.2500/18. In the coming sessions, cautious trade is expected to give way to still lower levels. A later break below 1.2400 will open up the 1.2365 Fibonacci retracement. Already oversold daily stochastics could prompt short-covering/consolidation around here.