Hello Traders,
It’s almost mid-week and the beginning of a new month. I can spot a few nice setups which could be our bread and butter tomorrow.
Let’s check them out.
1. GBP/USD
GBP/USD resumed another bullish run today after hitting a key support level (1.22554)
All we have to do now is wait to see the reaction of price as it get’s closer to resistance level 1.24071.
A breakout means, we could be looking at 1.25308 as the next possible resistance level and if the bulls fizzle out, and we get a bearish confirmation pattern, price could fall back to support level 1.22554.
I suggest we wait and see how the daily candlestick closes and be patient enough to see how the first few hours of tomorrow would look like before engaging this pair.
2. XAU/USD (GOLD)
Gold has been breaking new resistance level since we resumed this week.
The million-dollar question is:
Can the Bulls break resistance level 1788.91?
The last time price got this far was almost 8 years ago, and when price did get to that level, it was rejected.
Let’s see how it goes, if price breaks the 1788.91 level, then we could be seeing a new resistance level (1872.07) get hit by price.
If price is rejected, we may see price retest support level 1768.63, and if the bulls don’t recover, we could see the bears break support level 1768.63 and head straight to 1742.25.
What are your thoughts?
