GBPUSD seeks support
The pound continued lower as Britain’s Q3 GDP failed to impress. A bearish MA cross was a sign that the buying pressure was wearing off. The confirmation came in the shape of subsequent breaks below 1.2200 and 1.2100 which sits on the 20-day moving average. The daily support at 1.1900 is the closest level to see whether buyers would return to the market. Its breach could trigger a new round of sell-off towards 1.1700. The bulls will need to reclaim the former support at 1.2200 before they could regain control.
USDNOK attempts to bounce back
The US dollar jumped over upbeat GDP and PCE readings in Q3. From the daily chart’s perspective, the pair is still holding onto its gains from the August rally, but the 30-day moving average has acted as a strong cap. Short-term sentiment has been muted after a series of faded bounces, but a close above 9.8600 could be an encouraging sign. A rally above 9.9600 may open the door for a sustained recovery above 10.0700. On the downside, the double bottom at 9.7000 is a key support and a breakout would send the pair to 9.5000.
SPX 500 tests key demand zone
The S&P 500 fell as strong US economic activity fanned fears of restrictive rates for a longer period of time. On the daily chart, the index is drifting towards the daily support of 3700 after coming off November’s high of 4130. This means that the price action is at a crossroads and could stay in this range before a breakout dictates the next direction. In the short-term, a brief bounce came to a halt at 3890, leading to a test of the critical demand zone above 3700. Limited buying may emerge as the RSI returns to the neutral area.
