Gold fresh bullish pattern above 1,767 support [Video]
(Olimpiu Tuns – Learn 2 Trade)
XAU/USD rallied in the short term after escaping from a minor flag pattern. The rate retreated a little after reaching the 1,780 key resistance but the bias remains bullish on lower time frames. The price of gold was traded at 1,776 at the time of writing far above today’s low of 1,768. Gold is still bullish even if the US ISM Manufacturing PMI came in better than expected yesterday and after the RBA. The Cash Rate was increased from 1.35% to 1.85% as expected. Later, the US JOLTS Job Openings could shake the markets as the indicator is expected to drop from 11.25M to 10.99M.
Technically, the XAU/USD dropped but it has failed to reach and retest the immediate uptrend line and now it has escaped from the flag pattern which represents an upside continuation pattern. The 1,780 stands as a static resistance. A valid breakout through this level could activate further growth and could bring new long opportunities. The bias remains bullish as long as Gold is traded above the uptrend line.
The GBP/USD is testing key support during its upward trend
(Ali Mortazavi – Inveslo Trading Ltd)
On the four-hour chart, the GBP/USD turned bullish after crossing above the 200-period EMA last week. Currently, the pair is trading within an ascending channel. Having made a new top at 1.22956, in line with the channel’s upper border, the price is hanging out around the 1.21857 support level. It is not surprising to see the pair consolidate around this barrier for some time since selling pressure is unlikely to be strong enough to wipe out the support level immediately.
As long as the pair sticks within the channel, the outlook remains positive for the pound, even if the recent sell-off is followed by a broader bearish pressure below the current support level. If the price declines further, it could reach the support area of 1.21106 along the 200-period and 50-period exponential moving average boundaries. With this confluence of support levels limiting losses, GBP buyers may succeed in making a new higher bottom, aiming for 1.21857.
Otherwise, a decisive channel violation would push the pair below the moving averages, keeping more sellers at the edge of their seats trying to get back to 1.20464.
Momentum oscillators point to a fading bullish bias within the short term. The RSI has fallen into the neutral territory after reaching 70-level. Momentum seems to be seeking lower levels during the upward trend it is following. Positive MACD bars are retreating from the signal line toward the zero line.