Intraday Analysis - Thursday, Oct. 22

US 30 remains bullish

The Dow (US 30) kept its cool after jumping over 600 points in the past few sessions.

• A move above 52500 has shaken out some bearish hands as buyers remain in the market.

• 52000 at the recent low is a critical support level, as its breach could lead to a spiral towards 51400.

• On the upside, 52800 is the closest target, and the daily resistance of 53000 is a critical top to keep the index on track.
  

GBPUSD hits resistance

The pound reversed as annual inflation rose to 3.5%, the highest since this time last year.

• The recent bounce off firm resistance at 1.3400 is a key level to keep cable afloat.

• A breach at the said resistance could trigger a continuation towards 1.3460.

• The sell side will need to clear 1.3350 before they can hope for a turnaround.

• The pair looks to keep its 100 pip move validated to avoid a test at the 1.3300 zone.

USOIL keeps the pressure on

Oil fell as crude saw a firm rejection at the psychological level of $100.

• Despite a neutral reading on the RSI, oil has kept its upward bias intact.

• Fresh selling and profit-taking could test the bull’s resolve.

• 97.20 becomes the next support in case the pullback continues, whilst 95.00 is a major level to keep prices propelled.