Forex Trading Library

Intraday Analysis – GBP breaks lower

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USDCAD hits resistance

The Canadian dollar recouped some losses after steady retail sales numbers. The price continues to grind its way up towards May’s peak of 1.3650. A series of higher lows indicates mounting buying pressure and have been opportunities for trend followers to stake in. A close above the round number and the former support of 1.3600 would extend the rally to 1.3650, paving the way for a potential bullish continuation in the medium-term. On the downside, 1.3510 is the closest support to maintain the intraday momentum.

EURGBP tries to rebound

The pound sank after August’s services and composite PMI slipped into contractionary territory. A brief fall below July’s low of 0.8510 has put the bulls on the defensive, risking a deeper correction to 0.8400. A tentative close above 0.8560, likely driven by profit-taking, has prompted sellers to trim their bets, easing the downward pressure. The support-turned-resistance of 0.8600 is a major level to clear before a sustained recovery could take hold. 0.8500 at the base of the bullish momentum is a fresh support.

USOIL fails to hold

WTI crude struggles as weak manufacturing data across major economies could weigh on demand. A limited bounce off the 20-day SMA came to a halt at 81.60 and a subsequent drop below 79.00 invalidated the double bottom, forcing early buyers to abandon ship. A new round of sell-off would send the commodity to 76.50. The RSI’s oversold situation may offer some relief if short-term sellers take some chips off the table. However, the bulls could be wary of catching a falling knife. 80.00 is the closest resistance overhead.

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