GBPUSD – Sterling/dollar moves higher within trading range
The GBPUSD has surged higher in recent weeks, following a false-break of 1.2100 key support level. Overall, this pair is still in a downtrend, but currently it is trapped in a trading range and moving higher. We still see this pair as mildly bullish whilst above the ‘line in the sane’ level at 1.2430. You will notice a recent inside bar break higher that took place last week; that event zone should act as support this week if we manage to re-test it (1.2430 area). This week, we are looking to potentially get long whilst prices close above 1.2430 with upside potential back to 1.2765 previous swing high area. However, we would avoid long positions on a convincing close under 1.2430 level.
AUDUSD – Aussie/dollar rotating lower after hitting resistance
After a meteoric run higher in recent weeks, the AUDUSD looks to have finally cooled off after running into stiff resistance up near 0.7606. The market has since fallen lower and we see sustained sell pressure under 0.7606, the bias looks tentatively short whilst the market closes below 0.7606. Therefore, selling rallies this week would be the strategy of choice until we see a convincing close above 0.7606.
EURGBP – Euro/Sterling bears in control
The EURGBP has been trending lower after topping out in October 2016. Price fell significantly lower last week, in-line with our recent discussion and call to sell whilst under 0.8850. There’s still potential for this market to continue falling, for those not already short. We can look to be sellers on any temporary strength and will retain our bearish bias until a close back above 0.8850 key resistance. Downside targets are near 0.8340 or even lower, potentially.
GOLD – Gold remains bullish, but retracing
The temporary uptrend in Gold has cooled off after hitting 1220.00. Price has found support at 1180.00 area and bounced slightly higher into Friday’s close, forming a small bullish tailed bar. This is not a large reversal and has not formed at any significant level, so it’s nothing to get overly-excited about. However, we are still bullish on Gold, but we prefer to wait for more substantial evidence before re-committing to long positions; stand aside until something cleaner presents itself on the chart.
Nial Fuller is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading. He has a monthly readership of 250,000+ traders and has taught 17,000+ students since 2008. Checkout Nial’s Blog – Learn To Trade The Market.