Intraday Market Analysis – GBP Continues To Recover

July 6, 2021

GBPUSD attempts reversal

The pound jumps higher as the US dollar weakens across the board, post-NFP.

The bullish RSI divergence was a warning that the sell-off had lost steam.

The rally above 1.3820 suggests that sellers have started to take profit. Strong upward momentum is the first sign of a potential reversal. A bullish MA cross may attract more buyers to fuel the rebound.

The RSI is flirting with the overbought area. A break above 1.3930 would open the door to 1.4000. 1.3820 is the immediate support if the sterling falls back.

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NZDUSD faces key resistance

The New Zealand dollar consolidates recent gains as the market goes risk-on.

After giving up most of the recent gains, the kiwi found support at 0.6950. By clearing the psychological level of 0.7000 the bulls are sending the signal that there is still hope for a U-turn.

The RSI has again ventured into the overbought territory.

0.7095 remains a major hurdle ahead after a failed attempt. Its breach would make 0.7150 the next target. Below 0.7010 the pair could retest the base of the rebound at 0.6950.

US 30 rises along trendline

The Dow Jones climbs back as investors bet on a dovish Fed for the foreseeable future.

The rally above last June’s high, at 34850, indicates that the buy-side has overwhelmed the sell-side. The index keeps rising relentlessly along a bullish trendline established in late June.

Sentiment remains upbeat and the bulls are aiming for May’s peak at 35100, a prerequisite for a new record high.

An overbought RSI may trigger limited retracement. 34720 along the trendline is the immediate support in case of a pullback.

By Orbex