Top three charts of the year: GBPUSD, DE30, Gold

GBPUSD

Let’s start today’s analysis with British pound. It was a very interesting year for the currency as it started with clear depreciation caused by “no-deal” Brexit risk. However, the end of the year brought the reversal of situation. The current upward move which one may see started after a rebound from the key support which is the area marked with green colour  on the chart is a result of price lows from 2016 to 2017. According to the classic technical analysis it is a chance to draw a huge double bottom pattern. Of course there is a long way to break the neckline of this formation (1.43) but current sentiment is strongly bullish. Recently the price bounced off 1.35 handle where lies the 38,28% Fibonacci retracement, but it could be only a temporary correction. In case of a break higher, the next resistance to watch is 50% Fibo retracement. On the other hand sloping trend line that was broken earlier could act as a nearest key support. 

GBPUSD D1 interval. Source: xStation5

DE30

It was a great year for German stock index. From the beginning of the 2019 it gained over 25%, although it still lags behind US indices. Looking technically at W1 interval, one can see that momentum has slowed down. The price is stuck below all time highs. The resistance at 13500 pts handle can be considered as a key level now. Only a break higher may open a way to a bigger upward move. In such a scenario the next resistance to watch is 1000 pts higher, the 14500 hanle results from the 127.2% Fibonacci retracement of the last correction move. Other resistances are hard to determine because higher we are dealing with uncharted waters. On the other hand, if the buyers do not manage to break higher, there is also a good place to start a considerable downward correction. Then the nearest key support lies at 12600 pts handle and only a break below may change the mid-term sentiment to bearish. 

DE30 W1 interval. Source: xStation5

GOLD

Last but not least, let’s take a look at the gold market. It was a powerful 12 months as the precious metal gain is almost 18% this year. However, looking technically on the chart, the rally stopped at key resistance area - 1540$. The zone marked with pink colour is a result of previous price reactions from 2011 and 2012 and also upper limit of growth chanell. In case of a break higher the way to a bigger upward move will be open. Then the next stop for buyers may be even $1785 handle. Considering a bearish scenario, a rebound from this level may trigger a bigger downward correction. When sellers take advantage, potential pullback could take the gold price all the way down to $1365 or even $1310.

GOLD MN interval. Source: xStation5