Intraday Technical Analysis – GBP Finds Buying InterestFOREX
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GBPUSD bounces off Fibonacci level
The better-than-expected UK CPI in June has lifted the sterling across the board.
Price action has seen strong support above 1.3730, a critical demand zone on the daily chart. After the initial rally, the pair has bounced off the 61.8% Fibonacci retracement level (1.3800) while the RSI recovered back to the neutral area.
Following a previous failed attempt, a bullish breakout above the supply zone around 1.3920 could boost confidence on the buy-side and trigger a reversal.
Then the psychological level of 1.4000 would be the next target.
USDCAD gains key support
The Canadian dollar softened after the BOC cut its bond-buying less aggressively than expected. The pair previously saw profit-takings near the recent top at 1.2550.
The RSI’s triple top in the overbought area was already a sign of overextension. The price has once again bounced off 1.2430, a former resistance turned into a support. A bullish breakout could extend the rally beyond 1.2600.
But if buyers struggle to hold the range, the greenback could be vulnerable to a sell-off. Then 1.2300 would be the next stop.
NZDUSD rallies to major resistance
The New Zealand dollar soared after the RBNZ cut its QE program in anticipation of policy tightening.
The initial surge above 0.7010 reveals renewed buying interest after the kiwi spent weeks above the important daily support at 0.6920.
The psychological level of 0.7000 saw its role reversed into a support. A rally above 0.7060 brings the kiwi closer to the critical supply area at 0.7100. Its breach may trigger a bullish reversal.
In the meantime, an overbought RSI can lead to a limited pullback as buyers build their momentum.
