Intraday Analysis - Wednesday, August 5

GBPUSD(pound) hitting support

The GBPUSD(pound) found a bounce as price action looks to gain a foothold after a recent surge in the dollar.

• A new low below 1.3450 suggested a bearish continuation after the recent rally.

• The upbeat market sentiment could attract more trend followers.

• The psychological level of 1.3500 is next, where more buyers could enter the market.

• As the RSI ventures away from the overbought area, 1.3360 is the closest support as a slight bearish divergence emerges.

XAUUSD bounces back

Gold looks to test the recent high at 4100 as the metal looks towards another fresh high.

• Prices seem to have found a solid foundation at 4060, from where the bulls hope the precious metal is hitting support.

• 4020 at the recent low is a critical support to keep the rebound momentum intact.

• On the upside, a break at the previous top could pave the way to a break at 4140, and then another rally towards a fresh high.

USOIL crashes lower

Peace talks intensified as oil traders look for the possibilities of a ceasefire in the Middle East.

• A close below 75.50 could open the door to a broader sell-off in the medium-term by forcing buyers to cut their losses.

• A bullish divergence could alleviate the pressure if there is a turnaround.

• The round number of 80.00 would be the first target in that case.

• 73.00 is the level to assess if the sell-off will continue.