Intraday Market Analysis – GBP Attempts Reversal

GBPUSD bounces a triple bottom

The pound grew after the Bank of England raised its inflation forecast.

The pair met with strong buying interest at the triple bottom (1.3600) on the daily letter. An extraordinary RSI divergence was an indication that the sellers had taken their foot off the pedal.

A subsequent rally above 1.3690 would prompt more bears to cover. Overbought RSI can temporarily limit the initial momentum.

Patient buyers would wait for a withdrawal before jumping. Bounce up 1.3800 would challenge the September high at 1.3900.

USDCHF tests Fibonacci level

The Swiss franc softened after the Swiss national bank promised to keep its policy loose.

The US dollar saw an acceleration in its momentum after it released the daily resistance at 0.9260. The double top of the RSI triggered a retreat to let the bulls breathe.

The pair found offers at 61.8% (0.9220) Fibonacci retracement level. Pause up 0.9280 would restart the rally to the April peak at 0.9460.

A low leak could send the green dollar to 0.9160, a key floor to keep the uptrend floating.

USDCAD is testing key support

The Canadian dollar halts its rise as July retail sales unexpectedly show a contraction.

The pair faced hard selling pressure close to the August high (1.2950). The retreat tests the key support at 1.2635. A bestselling RSI may attract some bidding. Then the bulls must get up 1.2795 for continuation.

Failing that, a bearish flight would dampen the optimism and those who had previously bought into this demand would have to come out. Then 1.2500, a is main support in the daily chart, would be the second line of defense.

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