Forex Trading Library

Intraday Analysis – GBP On the Road to Recovery

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GER 40 begins correcting
The Equities market sees GER 40 fall below 18700, with resistance at 18900 and support at 18500.

The Equities have seen a pullback in recent sessions as many have fallen from their record peaks. The Dax 40’s drop below the daily support 18700 has dented the short-term enthusiasm. However, bulls might not have had their last word yet as general sentiment remains upbeat, especially with progressive PMI data coming out of the Euro bloc. 18900 is the immediate hurdle; a close above this would resume the uptrend. As price action touches 18500, a break here could lead to a runaway sell-off.

GBPUSD bouncing back
GBPUSD rebounds above 1.2700, targeting 1.2760 and 1.2810. Support at 1.2670.

After mixed PMI data out of the UK, the US dollar looked to gain a foothold over the pound. After a brief dip below the 1.2700 handle, prices lifted over 50 pips to maintain the bull run. This latest psychological level is where some buyers have stepped in, and 1.2760 is the first zone to alleviate downward pressure. A close above 1.2810 next to the 20-day SMA would flush out selling interests and pave the way for a sustained rally. On the downside, a lack of support would drive cable towards 1.2670.

EURJPY continues to climb

EURJPY climbs above 169.20, targeting 170.15. Support at 168.80 and 167.35.

Even though inflation fell again in Japan, the Euro continues to climb against the Yen. The pair has held on to its gains after breaking above 169.20. A series of higher lows indicates rising bullish momentum, likely attracting more buyers. The recent peak of 170.15 is a significant ceiling ahead, and its breach would signal a bullish continuation. Conversely, a fall below 168.80 would lead to a test of the previous double bottom at 167.35.

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