GBP/USD Tests A Price Floor Once Again

  • 5 Dec 2018




The USD/JPY pair has rebounded from the 112.82 support level, where buyers returned to the pair. The question is whether the previous bullish trend will resume. Momentum indicators remain bearish; with MACD approaching the zero line and RSI following a downward trajectory. 









The EUR/USD pair has rebounded from the descending trendline once again indicating that this may be a new support area for the pair. A series of doji candles do indicate indecision and the pair may consolidate between the 1.129 and 1.142 price levels, in the near term. Momentum indicators have turned neutral if slightly bearish which is consistent with price action consolidating. 





Fundamental factors influenced the recent sell-off in the GBP/USD pair and these factors continue to put pressure on the Pound. The pair is now testing the 1.269 price level which remains the floor of a recent trading range. Momentum indicators are moderately bearish with MACD remaining below the zero line and RSI approaching the 30 support level.








The USD/CHF pair has broken back below the 0.997 price level and given that price action has broken the descending trendline to the downside. The 0.997 price level appears to be a sticking point for the pair as there is not serious momentum in either direction. Momentum indicators have turned sharply bearish with MACD approaching the zero line and RSI remaining in neutral territory.








The USD/CAD pair has broken the ascending trendline and has rebounded from the 1.316 support level to test the 1.326 price level once again. The previous uptrend may continue especially if price action able to break the ascending trendline once again. Momentum indicators are bullish. 







Silver has rebounded from the 14.03 price level to maintain a recent trading range between the 14.03 and 14.91 price levels. Buyers have returned to the metal to break the 14.41 price level. Momentum indicators have turned bullish and volume has climbed into the move. 








Gold has once again undergone a bullish retracement from the ascending trendline to break the 1231.10 price level and is now approaching the 1241.48 price level. This price level, however, is a strong resistance area for the pair which has seen price action unable to break on several previous occasions. Momentum indicators appear to be turning more bullish. 








Oil appears to have broken a descending flag pattern, with price action appearing to make a recovery after an extended sell-off. MACD appears to be undergoing a momentum reversal and RSI has broken the 30 support level to the upside. Volume has spiked once again indicating plenty of interest in the commodity.




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