Hammer on the GBP/USD

On the daily chart of the GBP/USD we can see that the pair has been a very good bearish trend since it bounced back down from the 1.4300 level, where we can find the 55 month EMA. When the GBP/USD got to the 1.3900 level, it consolidated for a while and then it accelerated its bearish momentum to get to the 1.3700 level. The 1.3700 level has already acted as a support on the GBP/USD, but even if the price breaks below that level, it may find some support at the 200 day EMA. Below the 200 day EMA, its next support could be the 1.3500 level. The current candle is the shape of a hammer, which is a bullish reversal pattern. If the next daily candle is bullish, then the GBP/USD may change its direction to the upside. However, the 1.3900 level may act as resistance on the GBP/USD.

The Pound sinks

The Pound versus the Dollar accelerates its bearish momentum below the 1.3900 level and it is trying to reach the 1.3700 level. The pair may find some support around the 1.3700 level due to the fact that the zone has already acted as a support in the past. Besides being a round number level, just below the 1.3700 level we can see the 200 day EMA (blue line), which in turn may also contribute for all that area to become a good support. On the other hand, if the pair breaks below the 200 day EMA, the price may drop to the 1.3500 level. To the upside, in case of a pullback, the GBP/USD may find a resistance at the 1.3900 level. Usually after a big drop or rally, the price tries to pull back, because some profit taking takes place. Therefore, the pair may pull back to the 1.3900 level or the 1.4041 zone where we can find the 55 day EMA (purple line) and the 200 week EMA.

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The drop continues on the EURUSD

The EURUSD accelerates its bearish trend and falls to the 1.2100 level where it may find some support. None the less, the pair may continue falling to the 200 day EMA around the 1.2045 level, but a better support for the EURUSD may be the 1.2000 level. Below the 1.200 level, any of the round number levels all the way to the lows at the 1.1600 level may act as support. Let’s see if the EURUSD manages to break below its 200 day EMA or if it bounces to the upside from that moving average. In case of a bullish bounce, the EURUSD may find a good resistance around the 1.2300 level where we can find the 55 day EMA and the 200 month EMA, making that zone a very important resistance for the pair. Around the 200 day EMA we may also see that formation of a breakout-pullback pattern.

Interesting pullback on gold

Gold has been falling lately due to the rally on the US Dollar, but during this Tuesday’s session the price of gold has pulled back to the 55 day EMA (purple line), around the 1330 level. Even though the price of gold is trying to go back down, the bearish trend is still in place and the price may try to go back down with its main trend. In case of going back down, the price of gold may try to visit the 200 day EMA (blue line), which is currently just above the 1300 level. To the upside, in case gold continues heading higher, its next resistance could be the 1350 level, but a better resistance is located at the 1365 level from where the price has already bounced to the downside in a couple of times. The price of gold may try to go back down, but the fundamentals also play a big role and risk aversion or risk appetite may also influence the future direction of the precious metal.

It looks more and more like a descending triangle

On the daily chart of the EURUSD we can see that the pair has been consolidating around the 1.2300 level, where we can also find the 200 month EMA, without taking a clear direction. During the consolidation, the price action has formed what it appears to be a descending triangle with a support at the 1.2200 zone and a resistance at the upper trendline of the triangle. It seems like the bearish pressure is building up at the 1.2200 level and a breakdown of that zone could take the EURUSD to the 200 day EMA (blue line), around the 1.2040 level. On the other hand, a breakout above the triangle could take the pair to the peak at the 1.2554 zone, but in order for the pair to go back to its longer term bullish trend, its price must break above the 1.2600 level.

Amazing drop on the GBP/USD

The Pound versus the Dollar has accelerated its bearish momentum and breaks below the 55 day EMA around the 1.4041 level, where we can also find its 200 week EMA. The pair has completed four consecutive sessions falling as shown on the daily chart and it could continue dropping to the 1.3900 level. Below the 1.3900 level, its next support could be the low around the 1.3700 level. Another possibility on the GBP/USD is that the pair could leave behind a false breakout around the 1.4041 level and it could try to go back up. Due to the strong drop, the sellers may try to take some profits off the table and the pair may try to pull back. To the upside, the 1.4300 level, where we can find the 55 month EMA, could act as resistance. Actually, the 55 month EMA is what has been holding the GBP/USD down, which could end the month down, breaking the 13 year pattern where the pair had rally on every April.