Intraday Market Analysis – GBP in a Deeper Correction
GBPUSD plummets further
Sterling tumbled after a larger-than-expected fall in Britain’s retail sales last month.
The pair has been gliding down along the 30-day moving average. A previous consolidation around the psychological level of 1.3000 turned out to be temporary. A plunge took buyers by surprise and triggered a broad liquidation.
Below 1.2800, the pair would be heading to September 2020’s lows near 1.2700. A deeply oversold RSI may cause a limited rebound. Trend followers may double down around the support-turn-resistance at 1.3000.
XAGUSD breaks support
Silver slipped as the US dollar strengthened across the board amid rising Treasury yields. The precious metal has given up all gains from the rebound earlier this month, which reveals a lack of buying interest.
The RSI’s triple bottom in the oversold area may trigger a buy-the-dips behavior. 24.60 is the immediate resistance and 25.10 is a key hurdle to clear before the market mood would improve. 24.00 is a critical floor from the late March rebound and a bearish breakout may cause a new round of sell-off towards 23.30.
GER 40 turns south
The Dax 40 falls back as subdued risk appetite drags global equity markets. The latest rebound came to a halt in the supply zone around 14600.
An overbought RSI led intraday traders to take some chips off the table. 13900 is a major demand zone at the base of a recent consolidation. Its breach would trigger a deeper correction towards 13600.
An oversold RSI may attract some buying interest but the path of least resistance would remain down unless the bulls manage to lift offers near 14300 and 14600.