Intraday Analysis – GBP sees pullback – Orbex Forex Trading Blog

GBPUSD seeks support

The pound tumbled after the UK’s consumer price growth showed a noticeable slowdown in June. A clean cut below the first support and the round number of 1.3000 suggests that short-term buyers have trimmed their exposures, turning it into a resistance level. Medium-term sentiment remains upbeat though and the bulls may see the current pullback as an opportunity. As the RSI sinks into the oversold area, the confluence of a previous daily swing high and the 20-day SMA at 1.2850 is the level to see if buyers would reemerge.

USOIL consolidates gains

WTI crude rallies as the market becomes more optimistic over easing inflation. On the daily chart, a move above the major supply zone of 74.50 is a strong recovery signal by shifting the market mood to a brighter side. The rally has been fuelled by sellers looking to cover and momentum buyers jumping at the rebound opportunity. 74.00 is a fresh support and 77.30 is a recent top offering the bulls some breathing room and a break back above this level would extend the rally towards the psychological level of 80.00.

SPX 500 grinds rising trend line

The S&P 500 advances in the hope that the Fed will stop hiking rates soon. The rally accelerated after breaking above the previous daily top of 4455 and a rising trend line with a steep angle indicates a robust bullish pressure. From the daily chart’s perspective, the index is on its way to the March 2022’s high of 4640 with 4600 as an intermediate resistance. The RSI’s repeatedly overbought condition may temporarily limit the upward thrust if intraday buyers start to take profit. 4515 is the closest support should this happen.

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