Summary:
- GBPUSD makes the biggest downward correction since the beginning of September
- Bull market on the US stock exchange continues, US500 keeps reaching fresh all-time highs
- Gold tests the downward sloping trendline
GBPUSD
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Create account Try a demo Download mobile app Download mobile appGBPUSD had a turbulent time recently. The market pulled back from the 1.35 handle. The correction we are observing is the biggest one since the beginning of September 2019. According to the Overbalance methodology, the bearish signal surfaced once the price broke below the lower limit of 1:1 structure. Pair is testing the key support at 1.30 handle, where an upper limit of an earlier-broken trading range can be found. Should a bullish signal surface, the pair could make another upward impulse. On the other hand,in case bears continue to pressure the pair, the next support to watch can be found at 1.2780. A break lower could deepen declines to 1.2570.
GBPUSD D1 interval. Source: xStation5
US500
Bullish trend on the US stock market continues. US500 is reaching fresh all time highs each day and today is no different. Should a bearish signal surface, traders could expect a downward correction to occur. In such a scenario, the nearest support can be found at 3197 pts handle, where lies the lower limit of local 1:1 structure. In case the move is not stopped there, the next place to watch is the area around the 3155 pts handle. This level is marked with the lower limit of Overbalance pattern (the biggest correction in the whole upward move started at the beginning of October) andrecent price reactions. Breaking below this hurdle could hint at trend reversal.
US500 H4 interval. Source: xStation5
GOLD
Last but not least, let’s take a look at the gold market. Recent decline was halted at key support area ($1450), which is marked with 38.2% Fibonacci retracement of the upward move started in May 2019 as well as price reaction from the 19th of July. The price is testing the downward sloping trend line. A break higher could trigger a bigger upward impulse that could take the price to as high as $1518 handle. On the other hand a failure to break above the trendline and a potential pullback could take gold price all the way down to $1450.
Gold D1 interval. Source: xStation5
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