Intraday Market Analysis – GBP Struggles For Support
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GBPUSD fails to break higher
The sterling inched lower after the NIESR GDP estimate for the past three months fell short of expectations.
The rally above the daily resistance at 1.3890 may have saved the pound’s 17-month long rally. Though the combination of overextension and lack of support in the short-term may prolong the retracement.
The RSI’s double-dip into the oversold area may lead to a limited rebound.
The bulls will need to lift 1.3890 in order to reverse gears. Otherwise, a breach below 1.3770 may send the pair to 1.3600.
NZDUSD tests key support
The New Zealand dollar finds support after a rise in RBNZ inflation expectations in Q3.
The kiwi has built several layers of support above the key level of 0.6900 with the latest one at 0.6990. This is an indication that buyers are willing to bid up the price.
After a hiatus at the resistance at 0.7060, the RSI has dropped back to the neutral area to give the bulls a chance to make another push. The narrowing range would culminate in a breakout-raising momentum in the process.
SPX 500 surges to new high
The S&P 500 continues to climb as weekly jobless claims meet estimates.
A series of higher highs suggests that the bullish sentiment is still intact. 4480 would be the next stop as momentum traders jump in. The RSI has broken into the overbought territory, which could temper buyers’ fever to raise their stakes.
The index may look to consolidate its gains after a new all-time high. 4440 is fresh support in case of retracement. 4425 near the upper band of the previous consolidation range would be the second line of defense.
