GBP/USD seeks support
Cable struggles as a flare up inflation last month sows doubt in the UK economy. A bearish RSI divergence showed a deceleration in the rally and a drop below 1.2770 prompted short-term buyers to bail out. May’s high of 1.2670 has turned into a fresh support to see if buyers would make their way back. Failing that, 1.2530 next to the bullish MA cross on the daily chart would be a major floor to maintain Sterling’s edge. The newly formed supply zone 1.2800-1.2850 is the obstacle to clear before the uptrend could resume.
USD/CAD breaks lower
The Canadian dollar advanced as April’s retail sales came out above expectations. The pair remains under pressure after it broke below November’s low of 1.3250. A bearish MA cross is likely to attract more selling interests in the near-term as previous buyers look to switch sides. 1.3270 is the first resistance to expect the bears to sell into strength and the support-turned-resistance of 1.3350 from the daily chart is a major level to lift to initiate a meaningful rebound. A fall below 1.3180 would extend the sell-off towards 1.3100.
US OIL awaits breakout
WTI crude bounces as traders expect the Fed to be near the end of the tightening after Powell’s testimony. As a show of resilience, the price has managed to stay above the critical floor of 66.00. A close above the first resistance of 71.60 has eased the downward pressure but the bulls will need to lift the recent peak of 73.50 before they could end the lengthy consolidation and push for a broader recovery above 76.00. On the downside, the psychological level of 70.00 is the first support to keep the current momentum intact.
