Intraday Market Analysis – GBP In Bearish Reversal

Intraday Market Analysis – GBP In Bearish Reversal

GBPUSD turns bearish

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The sterling struggles to stabilize as the UK braces for a fuel supply shock.

After three months of sideways action, the break below the daily support at 1.3600 could be the confirmation that the pound has sunk into a downtrend.

Strong momentum suggests that those who bought the dips had to bail out. 1.3300 is the next target.

A deeply oversold RSI would cause a limited rebound when short-term sellers take profit. 1.3550 is likely to cap the bounce with bears waiting to sell into strength.

NAS 100 tests crucial support

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The Nasdaq 100 tumbles as surging bond yields weigh on growth stocks.

The retest of the demand zone around 14750 from the daily chart has put the bulls under pressure. The break below 14850 has invalidated last week’s rebound, raising the odds for another round of sell-off.

The RSI’s double-dip into the oversold area has offered some temporary respite. However, unless buyers can lift 15220, a rebound would be an opportunity to sell. Below the said critical floor, the index could be vulnerable to a plunge towards 14500.

USOIL seeks support

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WTI crude dipped after the EIA reported an increase in US inventories.

The rally has met stiff selling pressure near July’s high (77.00). The RSI’s bearish divergence signaled a halt in the upward momentum.

Then a combination of profit-taking and fresh selling has pushed the price below the first support at 75.20. A bearish MA cross also points to a U-turn.

A pullback is necessary to let the bulls catch their breath. The resistance-turned-support at 73.00 would be a key level to keep the sentiment unscathed.

John Benjamin Macro-Analyst at Orbex

John Benjamin is a Macro-Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.