Intraday Market Analysis – GBP Lifts Key Resistance

August 6, 2021

GBPUSD seeks further support

The pound bounces higher on BOE’s upbeat inflation forecast for later this year.

The rally above the daily resistance level at 1.3900 is a strong sign that buyers are willing to commit. A bullish MA cross on the daily chart is likely to attract more buying interest.

Now price action is looking to hold onto its gains with 1.3850 as the immediate support. 1.3770 would be an important demand zone in case of a deeper retracement.

On the upside, lifting offers around 1.3980 could trigger a surge towards 1.4100.

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US 30 consolidates gains

The Dow Jones 30 consolidates as traders await today’s NFP.

A new high above 35100 indicates that the bulls are still in control. Though profit-taking ahead of this catalyst has driven the index to the support at 34700.

Sideways actions would allow buyers to accumulate at a better VWAP. Volatility would kick off when a breakout tips the balance to a direction.

A close above 35100 may send the index to 35500. However, a drop below the said support would cause a sell-off to the daily support at 34000.

XAGUSD tests psychological support

Silver falls as US treasury yields inch higher ahead of the jobs report.

The rally above 25.40 had prompted sellers to cover, but the bulls have met stiff selling pressure at 26.00, a former support that has turned into a resistance. 25.25 has failed to initiate a rebound, leaving the psychological level of 25.00 as a second chance.

An oversold RSI may rekindle buyers’ interest to trade the dip. Otherwise, the bearish sentiment would invalidate the latest rebound and the metal could be vulnerable to a new round of sell-off.

By Orbex