Forex Trading Library

Intraday Analysis – GBP attempts breakout

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GBPUSD tests resistance

The pound edged lower after the GDP fell short of expectation in Q3. The pair has managed to hold onto its recent gains after lifting the daily resistance of 1.2730. A bounce off the 20-day SMA at 1.2600 indicates renewed buying interests as sentiment remains generally upbeat. On the upside, a break above 1.2780 would attract momentum buyers and raise the bar to the psychological level of 1.3000 at the start of the summer correction. An overbought RSI may cause a temporary retreat for some breathing room.

USDCAD drifts lower

The Canadian dollar lost steam after the GDP flatlined in October. The price continues to struggle for bids after it sank below September’s trough around 1.3400. As more buyers scramble for the exit, traders would be wary of catching a falling knife especially as sentiment toward the greenback is weak. 1.3200 is the next level to see whether the buy side dares to push back or the exchange rate would be heading to last July’s bottom of 1.3100. 1.3320 is the immediate resistance in case of a bounce.

GER 40 seeks support

The Dax 40 treads water as investors digest bets on the ECB trimming interest rates next year. An initial retreat below 16750 has prompted some leveraged buyers to take profit, driving the index off its new all-time high of 17000. As the mood is still overwhelmingly bullish, trend followers are looking to stake in before another leg up with 16780 as a fresh obstacle. 16600 on the 20-day SMA is a key support to maintain the short-term momentum or its breach would signal that more bulls are closing their bets.

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