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Intraday Analysis – GBP bounced back

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GBPUSD recoups some losses

GBPUSD-CHART-3-11-2023

Cable advanced after the BoE emphasised that it would not cut interest rates any time soon. The price is treading above 1.2050 trying to hold onto the gain from its recent bullish breakout. 1.2290 right under the October high of 1.2330 is the key obstacle to lift before a meaningful recovery could materialise in the medium-term. Failing that, further weakness would put 1.2160 to the test and 1.2100 is key in keeping the current momentum or its breach would expose 1.2050, putting Sterling at the risk of a bearish continuation.

USDCHF holds onto gains

GBPUSD-CHART-3-11-2023

The US dollar struggles as risk appetite grows in the wake of a dovish Fed policy outlook. A break above the previously faded bounce of 0.9085 has prompted more sellers to cover their bets, positioning the greenback on a potential recovery path. 0.9010 at the base of the latest bullish impetus is the first level to expect follow-through interests and 0.8950 further down would be the bulls’ second line of defence. A close back above 0.9110 may attract momentum buying and open the door to the October’s peak of 0.9240.

UK 100 bounces higher

UK-100-CHART-3-11-2023

The FTSE 100 found some relief as the BoE kept its interest rates untouched. A jump above 7420 has led short positions to close, confirming the triple bottom of 7260 on the daily chart as a robust floor. However, stiff selling could be expected in the demand-turned-supply zone 7450-7500 as previously trapped bulls would be looking to bail out unscathed. A bullish breakout would trigger an extended rally to last month’s high of 7700. On the downside, 7370 is the closest support in case of a prolonged consolidation.

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