GBP Pulls Lower

GBP/USD goes into correction

The pound retreated after the BoE warned that the impact of rate hikes will be felt in coming quarters. From the daily chart’s perspective, the bias remains bullish as the pair reaches a 12-month high. A drop below 1.2600 has led intraday buyers to take some chips off the table but a limited retreat could be an opportunity for the trend followers to step in at a discount. 1.2490 along the 20-day SMA is a major floor to keep the current momentum intact. 1.2600 is a fresh resistance and a close above 1.2680 would resume the rally.

NZD/USD seeks support

The New Zealand dollar fell as weak US economic data weighed on risk appetite. The pair is looking to hold on to its gains after a tentative break above the April spike of 0.6380. While sentiment might have turned bullish, the rally could be running out of steam in the short-term with a bearish RSI divergence indicating a loss of momentum. A break below the immediate support of 0.6320 would force leveraged buyers to bail out and trigger a correction. 0.6230 on the 20-day SMA is the next level to gauge buying interest.

NAS 100 grinds higher

The Nasdaq 100 rallies as rising unemployment benefit claims raise hopes to halt further rate hikes. On the daily chart, the index continues to grind its way up along the 30-day SMA, a sign that the bullish bias is still intact despite some choppiness in the shorter time frames. Buyers have been eager to step in at pullbacks, resulting in fresh highs. After a break above the supply zone around 13300, 13200 has become a support level. A close above the intermediate level of 13500 would open the door to the August 2022 high of 13700.

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