The Pound Begins To Lose Dominance Over Major Peers

• 26 Mar 2018

GOLD

Gold has broken the 50-day SMA to the upside and price action is continuing to the 1353.29 price level. The recent spike in buying momentum may be tempered once Gold reaches this price line which represents a previous resistance level. Momentum indicators suggest there is room for further upside, however, RSI suggests that momentum is slowing down and buyers may not have the conviction to push prices much higher.

GBP/NZD

The British Pound looks to be retreating from a strong bullish run over the last few weeks. Price action has broken back below the upper Bollinger band indicating a bearish price reversal. The reversal is confirmed by RSI with a bearish momentum reversal.

GBP/AUD

The GBP/AUD pair has yet to fully reverse a previous bullish move, despite several indicators suggesting that the pair is overbought. RSI has stalled at the 70 resistance line, therefore, a candle closing below the upper Bollinger band and below the 70 line on RSI will be required to confirm the reversal.

EUR/GBP

The EUR/GBP pair is recovering from a significant sell-off and is now testing both the 23.6 Fibo level and the 0.873 price line. A break to the upside will likely resume a previous uptrend that had been forming. However, a rejection at this price line will likely result in price action dropping towards the 0.870 price level.