GBPUSD seeks support

The US dollar clawed back losses after last week’s initial jobless claims beat expectations. A jump above the previous high of 1.2500 has strengthened the bullish bias as the price recovers from its October lows. 1.2600 at the start of a sell-off in early September is a key resistance to clear before the pound could climb higher. As the RSI showed a repeatedly overbought situation, a drop below the first support of 1.2470 has led some buyers to take profit and 1.2380 is the bulls’ second layer of defence in case of a consolidation.

USOIL tests first hurdle

WTI crude struggles as OPEC+ unexpectedly postponed a meeting on output cuts to next week. The price is looking to stabilise at the base of the July rally around 72.20 after it gave up most of the gains from last summer. The bounce has come under pressure at 78.60 as sellers try to double down. 72.20 is an important level to keep the rebound valid and prevent a deeper correction. On the upside, a decisive breakout may prompt sellers to cover and attract momentum buying with 83.40 as a potential target.

UK 100 attempts to bounce

The FTSE 100 treads water as BoE Governor Andrew Bailey dismisses speculations of rate cuts. Ever since the index fell into a correction in February, the narrowing consolidation has offered a playground for range trading. The quadruple bottom around 7200-7250 is critical in sustaining the optimism as its breach would lead to a broader liquidation and drive the price action into the 7000-range. In the short-term, 7400 is the closest level to support the current bounce and a close above 7550 would bring forward 7680.

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