Intraday Market Analysis – GBP Tests Important Support

GBPUSD rests on daily support

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The sterling fell back after the UK’s GDP contracted more than expected in Q1. Indeed, the pair is now back to square one after it gave up gains from the previous rebound.

The psychological level of 1.4000 has been a tough resistance to crack. The lack of momentum suggests that sentiment remains downbeat. The pair is retesting 1.3790, a key support from the daily timeframe.

A bearish breakout would trigger a new round of sell-off to 1.3700. On the upside, a recovery may be choppy with 1.3940 as the first resistance to lift.

USDCAD rises towards recent peak

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The Canadian dollar remains underwater after April’s negative growth.

Sentiment has turned in favor of the greenback once again as it climbs above 1.2400. This indicates buyers’ commitment to recoup all losses from previous sessions.

The bullish MA cross out of the short-lived consolidation may pull more trend followers to the rally. A break above 1.2480 would trigger an extended rally towards 1.2600.

The RSI has slipped back into the neutral area. The former resistance at 1.2330 is a support in case of a limited pullback.

USOIL bounces off bullish trendline

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WTI rose back after data showed US inventories dropped by 8.2 million barrels last week.

Price action has bounced off the rising trendline (72.00) from late May while the RSI was in an oversold situation. This indicates that the ball is still on the bulls’ side. The uptrend is valid as long as the trendline remains intact.

Volatility helps buyers accumulate stakes. 72.80 is the closest support along the line. For more cautious traders, a break above 74.40 would confirm trend continuation.