Intraday Market Analysis – GBP Looks For Breakout Catalyst.
GBPUSD challenges previous peak
The pound inches higher supported by upbeat retail sales from April’s reopening. The pair is testing February’s peak at 1.4240.
A close above this important resistance could end the consolidation in favor of a rally towards 1.44. An overbought RSI may temper the bullish fever, however. The demand area around 1.4100 is a zone of congestion after it switched from resistance to support.
In case of a deeper correction, the psychological level of 1.4000 may see strong interest in buying the dip.
USDCAD fails to bounce higher
The Canadian dollar continues to advance as retail sales beat the market’s expectations.
The greenback has met stiff selling pressure within the supply zone around 1.2140. Its struggle to sustain its rebound is a strong sign that the bears retain control of the direction. A bounce is rather an opportunity to sell into strength.
1.2010 is the long side’s last-ditch, and its breach would raise the bearish momentum and trigger a new round of sell-off to a six-year low at 1.1920.
NAS 100 rebounds from psychological level
The Nasdaq Composite rallies as investors ponder the sustainability of elevated inflation. From the daily chart’s perspective, the index has bounced off the demand zone near the psychological level of 13000.
The double bottom is an indication of strong buying interest at this major support. A rally above 13450 is a confirmation of the bullish MA cross, a reversal signal.
13810 is the next hurdle on the way up. As the RSI overheats, a brief pullback is plausible with 13150 as the closest support.