Intraday Market Analysis – GBP Tests Resistance

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GBPUSD grinds supply area

GBPUSD

The sterling bounced higher after data showed that Covid cases in the UK fell for five consecutive days. The pound has bounced off the origin of the February rally (1.3570) and the bulls would like to see how far they can push.

Price action may meet stiff selling pressure in the supply zone between 1.3800 and 1.3860. A drop below 1.3740 would keep a lid on the pound. Then 1.3600 could soon be revisited.

On the upside, sellers would start to cover if offers in the mentioned zone get lifted, paving the way for a potential reversal.

NZDUSD builds fresh support

NZDUSD

The New Zealand dollar rallies against a muted greenback as traders await this week’s Fed meeting. The pair is testing the 30-day moving average on the daily chart.

The bearish bias would make a rebound an opportunity to sell into strength. However, the break above the psychological level of 0.7000 gives buyers a glimmer of hope.

They will need to clear the major hurdle at 0.7040 to expect a turnaround. Otherwise, a fall below 0.6945 may resume the sell-off, and 0.6810 would be the next target.

GER 30 rises towards the previous peak

DAX

The sentiment is mixed after a spillover from China’s crackdown on its technology sector. The DAX 30 index has recovered most of its recent losses and is testing the key resistance at 15700.

The RSI’s double top in the overbought area has so far tempered the bullish fever.

A breakout could help build up momentum and clear the last resistance at 15810. On the downside, 15500 is the fresh support to let buyers catch their breath. A deeper correction could send price action towards 15200.

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