GBP/USD Pair Breaks Key Trendline

  • 13 Jan 2020


The USD/JPY pair has stalled at the 109.61 resistance line where price action has pulled back on previous occasions, as the price line represents a ceiling. It seems likely that the pair will remain within the 108.46- 109.61 trading range in the near term. Momentum indicators are bullish with MACD breaking the zero line to the upside and RSI approaching overbought territory. 






The Eurodollar has pulled back further to break the 1.112 support level, yet the break has seen the return of buyers. Previous pullbacks have generally gone no further than the ascending trendline. Price action is now, once again, testing the 1.112 as buyers attempt to reverse the bearish break. Momentum indicators have bearish trajectories. 




The GBP/USD pair has broken the ascending trendline to the downside, with the pair heading towards the 1.295 price level, once more. The 1.295 support level has resulted in reversals on previous occasions. Volatility is expected as Brexit plans are finalized. Momentum indicators are neutral. 





The USD/CHF reversal has stalled after clearing the 0.971 resistance level. A series of small-bodied candles indicate indecision from traders. The long-legged doji could represent a point of exhaustion for the pair before further bearish moves. Momentum indicators have upward trajectories.  





The USD/CAD pair has begun to climb, moving through a series of resistance levels despite selling pressure. A stall has occurred at the 1.304 resistance line and despite spikes, no break has materialized. The next target for buyers is the 1.314 resistance level, which would result in the pair returning to a previous trading range. Momentum indicators have bullish trajectories. 





Silver bulls have been tempered with a rise in selling pressure which has taken price action through the 18.09 support level and back towards the 17.73 support line. Price action has remained at this resistance area as a result of declining geopolitical tensions. Momentum indicators have bearish trajectories and are pulling back from overbought conditions.   





Gold sellers have returned to the metal and price action is now testing the 1552 support level, where bearish moves have stalled. This price level will likely be maintained as geopolitical tensions begin to wane. Momentum indicators are returning from strongly overbought conditions. 





WTI price action has recovered almost all of the gains from the recent unrest in the Middle East. Price action is once again testing the 59.18 support level and is moving towards the 58.42 support level. Any moves toward the ascending trendline will likely result in a bullish rebound. Momentum indicators have bearish trajectories.


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