Forex Trading Library

Intraday Analysis – Gold tries to recover

0 49

GBPUSD breaks higher

Chart of GBPUSD

The pound advanced after resilient UK wage growth put pressure on the Bank of England to tighten policy. A new high above 1.2850 suggests a bullish continuation after a near four-week long consolidation. Such an upbeat confirmation in market sentiment would attract more trend followers. The supply zone formed by the psychological level of 1.3000 and a 15-month high of 1.3050 is next where resistance could be felt. As the RSI ventures into the overbought area again, 1.2880 is the closest support in case of a pullback.

XAUUSD bounces back

Chart of XAUUSD

Gold bounced as Fed officials hinted at the near end of the tightening cycle. The price seems to have found a solid foundation over the psychological level of 1900 from where the bulls hope the precious metal is bottoming out. A decisive break above the recent swing high of 1935 has prompted more bears to cover in fear of a short-squeeze, which could pave the way for an extended recovery towards June’s peak of 1982 with 1955 as an intermediate hurdle. 1924 is a fresh support to keep the rebound momentum intact.

USOIL breaks key resistance

Chart of USOIL

WTI crude rallied after the IEA commented that the market may tighten in the second half of the year. A close above the previous swing high of 72.50 then the 6-week high of 74.50 may open the door to a broader recovery in the medium-term by forcing the shorts to cut their losses. A bullish MA cross on the daily chart compounds the reversal pressure with 76.80 as the next target. The RSI’s double top in the overbought area may cause a limited fallback and the base of the momentum at 73.00 is the level to assess follow-up bids.

Test your strategy on how the GBPUSD will fare with Orbex

Leave A Reply

Your email address will not be published.