Hello traders,
Welcome to the month of October. Let’s see what the first week of October has for us.
1. GBP/USD
Last week we saw price on the GBP/USD break a strong support level (1.36066) level before falling over 180 pips.
Before the week closed, we saw a pull-back which is leading price back to a previous support level which is now serving a resistance level (1.36066).
An expanding descending channel can also be seen which also aligns with price’s possible next stop.
Our job this week will be to see how price reacts to 1.36066 before taking any action. A reversal of price may encourage the sellers to take price back to support level 1.34326, and if the bulls are aggressive enough to break the 1.36066 resistance level, we could be seeing price hit 1.37156.
2. XAU/USD (GOLD)
The bulls and bears fought to a standstill last week, forming an area of consolidation on Gold which we will be focusing on this week.
The bulls breaking out of the consolidation band would mean resistance level 1779.42 may most likely be price next bus stop.
If for any reason we go bearish on this metal, it would mean that the bottom of the consolidation band gets broken by price. Then we could be eyeing support level 1724.62
What say you?
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