<p class=“MsoNormal“>On the daily Nasdaq chart below, we
can see that after the selloff in February, the market bounced right at the
61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. The breakout of the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> and the cross to the upside of
the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> were signalling a possible <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>bull
flag</a> in play, but the buyers needed to break the previous swing <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> first to confirm the pattern. </p><p class=“MsoNormal“>They did it. The target for the
bull flag looks insane as it stands at the August 2022 high at 13186, but we’ve
seen time after time how the dip buyers managed to push the market up even
though many bad news have been thrown to them, so at this point it wouldn’t be
a surprise anymore. </p><p class=“MsoNormal“>Nasdaq Technical Analysis</p><p class=“MsoNormal“>On the 4 hour chart below, we can
see that at the moment the buyers are trying to break the previous swing
resistance at 12020. A break above would open the door for a rally towards the
next resistance at 12274. </p><p class=“MsoNormal“>The red long period moving average
will act as dynamic support in case we see a pullback. The sellers at this
point will need a break below the 11492 support to regain conviction and target
new lower lows. </p><p class=“MsoNormal“>On the 1 hour chart below, we can
see that the market bounced at the 38.2% Fibonacci retracement level before
resuming the rally in the original trend. If we get a pullback, a possible
level where the buyers may lean onto is the red long period moving average and
the 11829 support. </p>

This article was written by ForexLive at www.forexlive.com.

<p class=“MsoNormal“>On the daily GBPUSD chart below, we can
see that the price has finally reached the top of the range at the 1.24 handle.
This will be a key level for both buyers and sellers. The buyers will need to
break above the level with conviction to keep the rally going. </p><p class=“MsoNormal“>The sellers are likely to start
piling in here to target a fall towards the bottom of the range at 1.1839 and
beyond. Beware that if this was just a squeeze on dollar longs, the following
rally in the US Dollar will be aggressive.</p><p class=“MsoNormal“>GBPUSD Technical Analysis</p><p class=“MsoNormal“>On the 4 hour chart below, we can
see that we have a <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>rising
wedge</a> right at the top of the range. This is a reversal pattern and we can
also see that we have a big and long <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>divergence</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a>. The setup for the sellers looks
incredibly good now. </p><p class=“MsoNormal“>Generally, the target would be
the bottom of the pattern, which in this case comes at the 1.20 handle. So, the
sellers have a really high reward to risk ratio here. The buyers, on the other
hand, will need to break above the upper <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> and the top of the range to
invalidate the selling setup and extend the rally.</p><p class=“MsoNormal“>On the 1 hour chart below, we can
see that the buyers may lean on the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level and the trendline before trying to break
above the top of the range. The sellers will want to wait for a break below the
trendline before piling in and extend the fall.</p>

This article was written by ForexLive at www.forexlive.com.

<p style=““ class=“text-align-justify“>The slight dip earlier came from the Eurozone inflation data <a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-march-preliminary-cpi-69-vs-71-yy-expected-20230331/“ target=“_blank“ rel=“follow“>here</a> but we are seeing yields turn around, similar to yesterday, to climb higher again. 2-year yields in the US are now up over 7 bps to 4.17% while 2-year yields in Germany have also pared the drop to be up 5 bps at 2.79% currently. The latter hit a low of 2.72% after the record drop in euro area headline inflation.</p><p style=““ class=“text-align-justify“>But as mentioned since yesterday, core inflation remains a big problem and the report earlier highlighted another record high reading in the euro area. That won’t give the ECB much comfort and reaffirms the likelihood that more rate hikes are still to come – something which markets are slowly wrapping their heads around as mentioned earlier <a target=“_blank“ href=“https://www.forexlive.com/news/markets-are-coming-around-to-the-idea-that-there-will-be-more-rate-hikes-to-come-20230331/“ target=“_blank“ rel=“follow“>here</a>.</p>

This article was written by Justin Low at www.forexlive.com.