GBPUSD consolidates gains
The pound found support after the UK budget committed to austerity. The pair came under pressure at the psychological level of 1.2000 which coincides with the origin of a bearish acceleration back in mid-August. The combination of profit-taking and renewed selling has driven the pair into consolidation. 1.1740 is the first support to gauge buying interest. Further down, 1.1500 from the latest breakout is a key demand zone to keep the rally relevant. A bullish breakout would send Sterling to August’s peak at 1.2250.
XAUUSD struggles for support
Gold slips as the greenback recovers amid COVID-19 curbs in China. An overbought RSI on the daily chart shows overextension as the price flirts with the psychological level of 1800 right under August’s high (1805). A bearish RSI divergence indicates a loss of impetus in the rally. A break below the immediate support of 1755 has prompted some buyers to bail out. A lack of bids may cause a retreat to 1720, an important area of confluence next to the 20-day moving average. 1767 has become a fresh resistance.
US 30 awaits breakout
The Dow Jones 30 stalls over timid risk appetite at the start of the week. The rally has slowed down as it nears the mid-August high of 34300. Strong pressure could be expected as those who believe in a bear market may look to double down. This is a critical ceiling, however, its breach could open the door for a sustained recovery in the medium-term. Zooming into the hourly chart, the retracement has found support over the recent peak (33150). A breakout on either side would dictate the direction in the days to come.
