Forex Trading Library

Intraday Analysis – GBP attempts to bounce

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GBPUSD tests support

Chart of GBPUSD

The US dollar retreated after May’s services PMI came in short of expectations. The pair came under pressure at a 12-month high of 1.2670 then a series of lower lows led recent buyers to leave the market, leaving a dent on the upward impetus. The latest surge hit stiff selling pressure at 1.2540 and a drift below 1.2400 suggests weak follow-through interest, turning 1.2480 into a fresh resistance in the process. 1.2370 is a key zone to keep the price afloat as its breach would trigger a new round of sell-off below 1.2300.

EURJPY consolidate gains

Chart of EURJPY

The euro steadies as Christine Lagarde reiterated that inflationary pressures remained strong. A brief dip below 148.80 has shaken out some weak hands but sentiment remains rather solid. The price action on the daily chart indicates a lingering bullish pressure as it bounces off the 20-day SMA (148.60). 150.40 is the closest resistance and a breakout would lift offers to last month’s high peak of 151.50, potentially resuming the uptrend. On the downside, 148.60 is a major support in case the single currency struggles to bounce.

GER 40 seeks support

Chart of DE40

The Dax 40 slipped after the ECB president signalled more rate increases to come. A swift rebound from the mid-April consolidation zone around 15700 has put the index back on track, with a break above the swing high of 16060 undercutting the short interests and prompting sellers to cover their positions. The support-turned-resistance of 16160 near the recent peak would be the last hurdle before a bullish continuation above the all-time high of 16330. 15860 is the first support as the RSI returns to the neutral area.

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