GBPUSD tests major resistance
The pound recovers as traders reposition ahead of the nonfarm payrolls later today.
Price action is hovering under 1.3700, a supply area on the daily chart which coincides with the 30-day moving average.
High volume could be expected in this area of interest. A bullish breakout would pave the way for the September high at 1.3880. However, the RSI’s overbought situation could have tempered buyers’ optimism. Sellers would be looking to fade the rebound.
A drop below 1.3530 would send the pair back to 1.3410.
USDCHF awaits breakout
The US dollar inched higher after a bigger-than-expected drop in new jobless claims.
An oversold RSI has triggered the buy-the-dips mentality in the demand zone (0.9220) along the 20-day moving average. Sentiment remains positive as long as the greenback trades above this critical support.
The short-term consolidation suggests indecision ahead of a breakout. The rally would resume should the bulls succeed in lifting offers around 0.9310. Otherwise, a bearish breakout may cause a pullback to 0.9150.
SPX 500 attempts bullish reversal
The S&P 500 jumped higher in hope of a breakthrough in the US debt ceiling drama.
The break above 4400 indicates a strong interest in keeping the index afloat. The initial surge has prompted sellers to cover their bets.
The RSI’s overbought status may lead to a pullback to let the bulls catch their breath. The triple bottom around 4290 has become a solid base.
A deeper correction would lead to 4230. On the upside, 4480 is an important hurdle from the daily timeframe. Its breach would lead to a recovery to the peak at 4550.
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