Intraday Analysis – GBP seeks support – Orbex Forex Trading Blog

GBPUSD probes for support

Cable tries to stabilise after June’s retail sales beat expectations. A break below 1.2900 has further put the bulls on the defensive. On the daily chart, the pound is still in an uptrend, this means that the correction is still probing for support. 1.2800 over the 30-day SMA is the next stop to see if buyers would return. Otherwise, 1.2690 would be a critical floor. A bullish RSI divergence is an encouraging sign suggesting that the sell-off has lost some momentum. 1.2960 is the first hurdle to lift to ease some of the pressure.

USDCAD attempts to rebound

The Canadian dollar came under pressure after weak retail sales data in May. After a tentative rally above 1.3230, a bounce off the demand zone 1.3120 is a sign that buyers are trying to hold onto their recent gains. A retest and a breach of the major obstacle of 1.3230 which coincides with the 20-day SMA would flush out the remaining sellers and extend the rally to 1.3300, potentially opening the door to a broader recovery. A fall below said key support would invalidate the rebound and send the pair towards 1.3000.

GER 40 consolidates gains

The Dax 40 tries to hold onto recent gains dragged by a weak tech sector. A close above the previous swing high of 16200 may have put the index back on track. This suggests that overall sentiment has remained upbeat despite a temporary pullback. 16300 right under June’s high of 16420 might be the last resistance level and a bullish breakout would pave the way for a new all-time high. On the downside, 15990 at the lower end of the latest consolidation is a key support to keep the rebound momentum going.

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