GBP finds support

Jing Ren Orbex

GBP/USD consolidates

The pound treads water as the BoE warns of a recession after raising rates by 50 bps. The rebound came to a halt at 1.2300, a major resistance from the daily chart. A bearish RSI divergence already showed a slowdown in the rally. A follow-up break under 1.2150 has further weighed on short-term optimism. 1.2070 is buyers’ stronghold and its breakout could trigger a liquidation towards 1.1900. 1.2200 is the closest resistance and the bulls will need to clear 1.2300 before they could hope for the rally to resume.

USD/CHF attempts to rebound

The US dollar softens as traders take profit ahead of July’s job data. On the daily chart, the pair is seeking support in a pennant consolidation and it would be too soon to call a bearish reversal. The recent rally above 0.9590 prompted some sellers to cover their positions, leaving the door open for a potential rebound. 0.9660 is the closest hurdle and its break could raise offers to 0.9790. 0.9540 is a fresh support and a breakout would bring the buck back to 0.9480 where it could be vulnerable to another sell-off.

NAS 100 tests major resistance

The Nasdaq 100 rallies supported by growing risk appetite. A rally above 12900 has put the index back on track after short-term selling interests cut their losses. Last May’s high at 13550 is a key resistance ahead. Its breach could turn bearish sentiment around in the medium-term and lay the foundation for a sustained recovery. The RSI’s overbought condition may temporarily limit the upside range. The former supply zone (12900) has become a fresh support where the bulls may look to accumulate in case of a pullback.

Author

Jing Ren

Orbex

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.

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