A sweet occasion on Gold! The price was declining sharply for the past few days after touching the upper line of the channel up the formation. Natural and obvious target was the lower line of this pattern. We reached that line yesterday and bounced from it today. Together with the dynamic support, we had a static one – on the 1315 USD/oz. This setup has definitely a great risk to reward ratio as the target lays on 1360 USD/oz.
Now, to setups with the GBP and in both of them, the price action in promoting the gains of the pound. The first setup will be on the EURGBP, where the price broke the lows from 2019 and 2018 and went lower. The closest target is the lows from 2017 and the second half of 2016. Chances that we will test that level are very high.
Spring comes also to the GBPUSD, where on a weekly and daily chart we can see a beautiful inverse head and shoulders pattern. This week’s candle breaks the neckline of this formation, which formally gives us a buy signal. The target for this upswing is the down trendline connecting top from the 2014 and 2018. That can give us almost 400 pips now. Nice, huh?
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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