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Intraday Market Analysis – GBP In Choppy Side

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EURGBP seeks support

Sterling struggles over the UK’s large current account deficit. A surge from 0.8550 which sits on the 20-day moving average validates it as a solid demand zone. A close above 0.8660 has prompted short interests, sending the euro towards the recent peak at 0.8720, a major hurdle that has capped the single currency since April last year. A breakout may trigger a bullish extension towards 0.8900. In the meantime, an overbought RSI caused a brief pullback. 0.8600 is the support where the bulls may look to accumulate.

XAGUSD may see limited bounce

Silver plunged as sentiment in commodity markets eroded amidst recession fears. A fall below the critical floor (20.50) on the daily chart might have put the precious metal on a bearish course in the weeks to come. After momentum selling pushed the price past the psychological level of 20.00, 19.50 is a fresh support. The RSI’s triple dip into the oversold area triggered some profit-taking and bargain hunting, but the rebound could be temporary. 20.30 is the first resistance where the bears may sell into strength.

GER 40 hovers above critical floor

The Dax 40 recovered after the Eurozone’s core CPI showed a slowdown in June. A previous rally came to a halt around 13400 and then a break below 12900 signalled a return to the downtrend. A bearish MA cross on the daily chart suggests an acceleration to the downside. 12490 at the base of the March bounce is an important support. Its breach would turn the rally into a dead cat bounce, officially sending the index into a bear market. 13030 is the first resistance and 13350 the obstacle before a sustained bounce could happen.

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