GBPUSD pulls lower
High beta Sterling inches higher over easing concerns about the banking sector turmoil. A break above the recent high of 1.2330 confirms that the buy side still retains control of the direction. The pair is advancing towards the double top at 1.2440 on the daily chart where stiff resistance could be expected from both profit-taking and fresh selling. A bullish breakout would end the over three-month long consolidation and resume the uptrend. 1.2280 is the first support and the double bottom near 1.2200 a major floor.
NZDUSD tests support
The New Zealand dollar consolidates its gains as risk sentiment tries to make its way back. After the kiwi touched bottom at 0.6090, a series of higher lows indicates a strong buying pressure. 0.6180 is a fresh support over crossing SMAs on the daily chart, a sign that sentiment could be turning upbeat in the medium-term. A successful bounce would need to lift 0.6250 first then the recent swing high of 0.6290 to attract momentum buyers and trigger a runaway rally towards the daily resistance at 0.6370.
USOIL to test key resistance
WTI crude finds support from a surprise drawdown in US stockpiles. A new high above 71.50 has prompted more sellers to cover their positions, driving the price even higher. 76.00 from the mid-March sell-off is an important resistance where renewed short interests could be expected. A failure to break higher would keep the downtrend intact from the daily chart’s perspective. 72.30 is the first support should the price start to turn lower. The psychological level of 70.00 at the base of the current breakout rally is a key floor.
