Pullback on the GBP/USD to the 1.2200 level

The daily chart of the GBP/USD is showing us a possible breakout and pullback pattern around the 1.2200 level. The breakout and pullback pattern happens when an instrument reaches a support or resistance area, breaks it, and pulls back to the same level only to continue in the direction of the initial breakout. In this case we can see how the price of the GBP/USD found a good support around the 1.2200 level, but during this Monday’s session it broke it to the downside. The price came near the 1.2100 level to pull back to the 1.2200 where it has stall for the time being. If the prices bounces to the downside from the 1.2200 level, then the breakout and pullback pattern will be completed and the pair may try to visit the 1.2100 level. But if the price breaks above the 1.2200 level, then it may try to go and visit the 1.2300 level, which could act as resistance.

The EUR/GBP keeps its bullish momentum

The Pound continues weakening versus the Euro and that is why we see that the EUR/GBP pair keeps its bullish trend, due to the fact that the Pound is the quoting currency. On the daily chart of the EUR/GBP we can see that the pair has broken above the 0.8700, and even though it is too early to tell, the pair may try to go and visit the 0.8800 level, where it may try to stall. But above the 0.8800 level we can also see that the pair has the road clear all the way to the 0.9000 zone. To the downside, below the 0.8700 level, the 0.8600 may act as support along with the 55 day EMA, which is currently around the 0.8555 level.

No clear direction on the USD/JPY

On the weekly chart of the USD/JPY we can see that the pair has been in a range during the last few weeks with the 115.00 level acting as support and the 119.00 level acting as resistance. On the lower time frames it is hard to see that the pair has been consolidating, because in between it has had some volatility. However, on the weekly chart we can see that even though it has been volatile it is also range bound. The MACD indicator is showing us that the pair has a bullish trend, but this trend is losing some strength, due to the fact that the bars on the histogram are getting lower than the previous ones. If the pair breaks to the upside, then its next resistance levels could be any from the 122.00 to the 125.00. To the downside, the first relevant support that we see on the weekly chart is the 111.28 level or the 200 week EMA, which is around the 107.76 level.

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Follow up on the USD/CAD

A few days back we saw that the USD/CAD had found a good support area around the 1.3400 level and was having difficulties in breaking that level to the downside. But today, a daily rally on oil has supported the Canadian Dollar and the pair breaks below the 1.3400 to reach the 1.3300 as we mentioned on our previous analysis. On the daily chart we can also see that if the price keeps dropping, then it may try to visit the 200 day EMA, blue line, around the 1.3233 level, which could act as support, it may also continue with its bearish momentum and reach the 1.3200 level. On this same chart we see that its most relevant support is currently around the 1.3100 level from where it has already bounced to the upside and changed direction. On the other hand, if the prices bounces to the upside from the 1.3300 level, then it may go to the 1.3400, which may change from support to resistance and the pair may go back from there to its bearish trend.

The USD/CAD retraces to the 1.3400 level

The US Dollar versus the Canadian Dollar has retraced to the 1.3400 zone as oil keeps getting higher and supports the rally on the Looney. However, the 1.3400 zone has proven to be a good support for the pair as shown on the daily chart from where the pair has not been able to break it to the downside. A bearish breakdown of the 1.3400 level could cause the pair to go and visit the 1.3300 level or it could go to the 200 day EMA, blue line. If the price bounces to the upside from the 1.3400 level, then it could find some resistance around the 1.3500 level, but the real important resistance for the USD/CAD is located at its latest high around the 1.3600 level.

Gold is having problems with the 1163 level

On the daily chart of gold we can see that the precious metal has had a good bearish trend during the last months, but lately it has been trying to retrace to the upside. However, the bullish pullback seems to be running out of steam and it has stalled at the 1163 level where it has formed a double top. If the double top is confirmed, then gold could go back to is latest low around the 1122 level. The 1122 level could act as a support one more time, but if it breaks it to the downside, then the price may try to reach the 1100 level. To the upside, if it breaks above the 1163 level, the price could visit the zone around its 55 day EMA, purple line, which is very close to the 1200 round number level. On the 1200 level, gold could find some resistance.