Forex Trading Library

Intraday Market Analysis – GBP remains under pressure

0 449

GBPUSD seeks support

The pound holds steady as Britain’s inflation rose to 10.1% in September. From the daily chart’s perspective, the pair is forming a flag-shaped pattern after its recent sharp slide. While Sterling clawed back some losses, the directional bias remains bearish in the medium-term which may attract more trend followers. 1.1500 is an important ceiling and its breach could lift offers to September’s high at 1.1700. 1.1070 at the base of the latest rally is a key support. A bearish breakout would send the price back to 1.0760.

USDCAD consolidates gains

The Canadian dollar softened after the annual CPI eased to 6.9% in September. The price action is consolidating its latest gains after making a new high above 1.3840. A drop below 1.3700 has shaken out some weak hands but overall sentiment still points to the upside. The bulls may see the current pause as an opportunity to join the rally. 1.3660 is the first support while 1.3500 on the 30-day moving average is a key level to see follow-up interests. On the upside, a close above 1.3900 would resume the uptrend.

USOIL attempts to bounce back

WTI rallied after US inventories showed a surprise drawdown. While the rally above 86.00 and 90.00 has eased some pressure, the price hit resistance at the origin (93.50) of the late August sell-off and struggled to secure bids. This suggests that the bears may have doubled down. 81.50 is the immediate support and its breach would cause a retest of 77.00 where the crude could be vulnerable to a new round of liquidation. 87.00 is the first hurdle in case of a rebound and only a rally above 90.00 may turn the mood around.

Test your strategy on how the GBP will fare! Open your Orbex Account and start trading now. 

Leave A Reply

Your email address will not be published.