A Bullish Reversal For GBPUSD?

• 8 Nov 2021

USD/JPY

The USDJPY has begun to pullback and has once again touched and rebounded from the 113.21 support line. The pair is likely to continue oscillating within the current trading range as price action continues to consolidate. Momentum indicators have clear downward trajectories.  

 

 

 

 

GBP/USD

The GBPUSD pair has rebounded one again from the 1.341 price low, as heavy buying pressure in yesterday’s trading resulted in a dragonfly doji and therefore, may signal a potential reversal. Momentum indicators are fast approaching oversold levels.  

 

 

 

 

EURUSD

The EURUSD price action continues to tighten as the pair moves closer to the apex of the triangle, where we may anticipate a bearish breakout. A few tests in recent trading have resulted in a buyers returning to contain price action in the current range.  

 

 

 

 

USDCHF

The USDCHF pair has established a bearish trend with lower highs and lower lows. However, the pair has yet to break the lower bound of a previous consolidation channel at the 0.908 support line. A rebound has failed to stimulate a rally indicating a lack of appetite from buyers to drive price action.  

 

 

 

 

XAUUSD

The XAUUSD is climbing back towards the 1831 resistance line which has represented a strong obstacle for buyers, containing rally attempts since July. Despite significant buying activity into the recent move, especially towards the end of the last trading week, momentum indicators suggest that the pair is oversold.  

 

 

 

 

USOUSD

The USOUSD has dropped towards the ascending trendline where price action rebounded as the commodity found support. Another attempt at the 83.90 is on the cards if the current buying activity continues. Momentum indicators suggest there is further upside potential having stalled in bullish territory.  

 

 

 

 

JP225

The JP225 looks to be pulling back after a strong bullish move last week. Doji candles suggest that the move is driven mainly by a lack of buying interest rather than true bearish sentiment. The pair may now test the 29,371 support line once again.