Intraday Market Analysis – GBP under pressure
GBPUSD turns lower
The pound tumbled after the BoE warned of a protracted downturn. The price lost steam near September’s high (1.1700) and a break below 1.1440 sent buyers packing, turning it into a resistance. A lack of bids at the base (1.1300) of a recent bullish breakout is a warning sign that sentiment has gone cautious. 1.1100 is an important support and after the RSI sank to the oversold area, a ‘buying-the-dips’ behaviour could be expected. However, its breach could make Sterling vulnerable to renewed selling pressure.
USDNOK lifts resistance
The US dollar retains the momentum from the hawkish Fed meeting. The pair has been in a flag-shaped consolidation after it broke above April 2020’s high at 10.8000. The optimism remains intact in the medium-term and the latest catalyst rally could be a signal for a bullish continuation. A surge above 10.5500 has flushed out short interests. 10.7000 is a key resistance and a breakout would cause a runaway rally above 11.0000. 10.4000 is the immediate support on a pullback after the RSI showed overextension.
NAS 100 tests critical floor
The Nasdaq 100 slumps as fewer US jobless claims reinforces the tightening agenda. Previously, a tentative break below 10900 weakened the bulls’ position. A failure to achieve a new high above 11650 shows that the path of least resistance would be down. A sharp drop below the said support has definitely knocked out the buy side. A rebound is likely to be capped by 11060. 10450 would be the last level to salvage the situation. A bearish breakout could trigger a new round of sell-off and effectively resume the bear market.