Forex Trading Library

Intraday Analysis – GBP bounces back

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GBPUSD defends major floor

Chart of GBPUSD

The pound bounces higher thanks to upbeat services PMI in February. On the daily chart, the pair is still striving to hold above January’s low of 1.1840 which is a critical floor to keep the price afloat in the medium-term. A bearish breakout could trigger a sell-off towards 1.1600. The triple bottom at 1.1920 shows that the bulls are still eager to defend this major demand area and a pop above 1.2040 is an encouraging sign. A rally above the double top at 1.2140 would pave the way for a broader recovery.

XAGUSD attempts to bounce

Chart of XAGUSD

Silver makes its way back as the US dollar retreats across the board. Breaking the daily support of 20.60 from last November could keep the downward pressure on the precious metal. Though the RSI’s oversold condition on the daily chart may warrant a brief bounce as some sellers take their chips off the table. 20.80 is a fresh support and the support-turned-resistance at 21.40 is the first hurdle. Then 21.90 near the 30-day SMA could be a tough level to crack as downbeat sentiment may lead sellers to double down.

GER 40 breaks resistance

Chart of DE40

Equities surged as US Treasury yields eased amid improved risk sentiment. Despite its choppy path lately, the Dax 40 remains up from the daily chart’s perspective. The top range (15200) of the late January consolidation has managed to contain multiple pullbacks, which suggests a strong bullish interest. A break above 15600 has thrown out the remaining bears and may open the door for an extended rally above the ceiling at 15650. 15450 is the closest support as the RSI shot into overbought territory.

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