Bullish Reversal Underway For The Pound

  • 21 Aug 2019



USD/JPY buyers are beginning to build some momentum despite the selling pressure since the pair broke the descending trendline. The next target is the 107.16 price level which has been a key support level in the past. Momentum indicators have moderate upward trajectories. 








The Euro has rebounded from the 1.107 price line which retains its position as a key support level. The next target is the 1.112 support level. The Dollar recovery appears to be coming to an end. Momentum indicators have flattened in bearish territory. 






The GBP/USD pair continues its bullish recovery, approaching a key resistance area at the 1.218 price line where price action has stalled on previous occasions. It remains to be seen how much conviction is behind the reversal and whether buyers can push price-action towards the 1.240 support line.  Momentum indicators have turned sharply bullish.  






The USD/CHF pair has rejected the 0.981 resistance line yet buyers are still active in early trading. The failed break provides some confirmation of the longer-term bearish bias as the pair continues to oscillate around the descending trendline. Momentum indicators have turned more bullish yet remain in bearish territory. 







The USD/CAD pair continues to test the 1.330 resistance level and each time there is a break, selling pressure rises. Buyers appear to lack the conviction currently to take price action beyond the resistance area. Momentum indicators are bullish, however, RSI is approaching overbought conditions. 






Silver has once again rebounded from the 16.78 support line as the metal appears to be moving horizontally. Fundamental factors will likely be required for a breakout in either direction. Momentum indicators are also pulling back from overbought positions.







Gold has pulled away from the ascending trendline with rising bearish sentiment not seen since the beginning of July. A support level exists at the 1448.10 price line. Momentum indicators are also pulling back from strongly bullish positions and RSI has broken the 70 resistance line. 







WTI has broken both the descending trendline and the 54.92 support level with a strong bullish move as buyers appear to be building momentum. The next target is the 58.14 price line which represents a strong resistance area for the commodity. The overall trend, however, is descending and WTI continues to oscillate around the trendline.  Momentum indicators are neutral if slightly bullish. 



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