Hello traders,
Last week’s late movement of price gave room for some pretty interesting setups which are lined up for this week.
Let’s hit the charts:
1. GBP/USD
On Friday, the GBP/USD closed after breaking a key resistance level (1.30257)
If the Bulls commence this week with the same motivation they used in shattering last week’s area of support, we could see price hit a new area of resistance (1.31334-1.31683)
2. USD/JPY
Last week the USD/JPY succeeded in breaking out through resistance level 105.700, but was not able to break the first minor resistance level (106.11) outside the descending channel.
A reversal of price has sent price back to a familiar support level (105.606). If price breaks the present support level, it could encourage the bears to pull price further down to 105.183.
On the other hand, a bounce at the present level could encourage the bulls to push price to a previous resistance level (106.11) hit by price last week.
3. GBP/JPY
The entire last week, GBP/JPY tried breaking resistance level 137.405.
On Friday the bulls finally prevailed. This week we may most likely see price continue it’s journey to resistance level 138.325, and if the buyers are strong enough, we may see price continue their bullish campaign to the next possible resistance level (139.166)
All this depends on how the market opens this week, and how motivated the bulls are.
4. XAU/USD (GOLD)
There is a lot happening on Gold.
First of all, my Bias on Gold is bullish, as our daily candlestick closed with decent Marubozu candlestick last week, but well within a descending channel.
Price has now touched the roof of the descending channel for the fourth time now, which in my opinion has made the present resistance (1929.90) level a whole lot weaker than the previous three resistance levels.
If the bulls succeed in breaking the present resistance level, our next bus stop will most likely be resistance level 1953.70
If we do get a rejection and the bears take over the market at the present resistance level, our first possible support level would be 1912.92, and if the bears still persist to take price lower, then our second possible support level would be 1882.52
What are your thoughts?
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