Forex Trading Library

Intraday Analysis – GBP seeks support

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GBPUSD consolidates gains

Cable fell after the UK’s inflation slowed down to its lowest pace in two years. The recent high of 1.2430 was a support-turned-resistance from the daily chart and a surge above this ceiling might have opened the door to a meaningful rebound. The supply area 1.2500-1.2550 is the next threshold before the bulls may reclaim more control. In the meantime, the rally may need some breathing room in the short-term and a pullback could be seen as an opportunity to stake in. 1.2350 is the closest support to expect follow-through buying.

USDJPY holds onto gains

The Japanese yen struggled as the GDP showed a larger-than-expected contraction in the third quarter. So far it seems that the buy side is having a hard time lifting offers at last year’s peak of 151.90. A steep drop below 150.80 has stirred up volatility once again by triggering a liquidation of leveraged short-term bets. However, 150.20 saw renewed buying interests and a bullish breakout would lead to an extended rally. Further down, the double bottom at 149.20 is an important daily support level in case of a consolidation.

GER 40 keeps its edge

Cooling inflation across the scene boosts demand for equities. The Dax 40’s decisive break above October’s high of 15550 has put the buyers back in the game with a solid footing. The previous swing high of 15990 near the psychological level of 16000 is the next resistance standing in the way of a bullish continuation in the medium-term. As the RSI drops back into the neutral area, a limited retreat might be due to let the bulls regroup in anticipation of a new round of rally. The former supply zone 15500 has turned into a support.

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