Intraday Analysis – GBP keeps high ground
GBPUSD continues higher
Sterling advanced after an upward revision to January’s growth in Britain. The pair has held well following its break above the double top at 1.2440 on the daily chart with 1.2350 established as a solid support. A close back above 1.2440 is a sign of sustained buying interest as the bulls anticipate a new round of rally. A break above the peak at 1.2520 may release bullish inertia and extend gains towards May 2022’s high of 1.2660. As the RSI ventured into the overbought area, 1.2480 is the first support in case of a pullback.
AUDUSD breaks higher
The Australian dollar rallied as the labour market continued to show tightness last month. Successive breaks above 0.6680 and 0.6730 have prompted sellers to cover their positions, leaving room for further extension. Then a decisive close above this month’s high of 0.6790 may lay the groundwork for a bullish reversal in the medium-term. Before that, 0.6820 is the next resistance ahead and the bulls may need to catch their breath after the RSI shot into the overbought zone. 0.6750 is the first level to expect follow-up buying.
NAS 100 bounces back
The Nasdaq 100 made up lost ground as US data show falling producer prices and rising jobless claims. From the daily chart’s perspective, the index is still in a recovery mode under last August’s high of 13700. 12810 over the 20-day SMA is where buyers have stepped in and contained the retracement. After a bit of struggle around 13100 in the previous attempts a clean breakout would flush the bears out and resume the upward trajectory in the short-term. Clearing the recent top at 13220 may open the door to 13700.