Intraday Analysis – GBP attempts to bounce
GBPUSD tests support
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
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
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.