21 Feb

Intraday Market Analysis – GBP Attempts Breakout

February 21, 2022

By Orbex

GBPUSD tests resistance

GBPUSD

The sterling edged higher after January’s retail sales beat expectations. The recent pause has been an opportunity for the bulls to accumulate.

A break above 1.3640 would signal solid buying after previous failed attempts. The daily resistance at 1.3750 would be the next hurdle. Its breach could trigger a broader reversal in the weeks to come.

1.3560 is the immediate support. And 1.3490 at the lower end of the horizontal consolidation is the second line of defense in case the pair needs to attract more support.

USDCAD awaits breakout

USDCAD

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The Canadian dollar tanked after disappointing retail sales in December.

The US counterpart is still struggling below the supply zone around 1.2800. A close above this daily resistance could propel the pair to last December’s high at 1.2950, a prerequisite for a bullish continuation in the medium-term.

The current sideways action is a sign of indecision. 1.2640 is the lower boundary of the recent consolidation range. A bearish breakout would bring the greenback to a previous low at 1.2560.

EURJPY struggles for support

EURJPY

The Japanese yen rallies amid growing risk aversion across the board. The euro continues to shed gains from the surge earlier this month.

A fall below 131.90 triggered profit-taking, and the latest rally came out to be a dead cat bounce after it was capped by this support-turned-resistance. A break below 130.40 (which sits over the 30-day moving average) shows fragility in market sentiment and would cause another round of sell-off.

129.20 at the base of the bullish impetus would be the next support.

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