A Pullback On The Cards For GBPUSD

• 18 Feb 2022

USD/JPY

The USDJPY pair continues to oscillate towards the ascending trendline, which has acted as a key support level, preventing downside moves since September 2021. Bullish activity has already started and another attempt on the 115.41 resistance line is on the cards.

 

 

 

 

GBP/USD

GBPUSD buyers have driven price action back towards the descending trendline, however, this price area represents a key obstacle for buyers on 5 previous occasions. Given the moderate bullish conviction into the test of the trendline, it appears that a break is unlikely.  

 

 

 

 

EURUSD

The EURUSD has stalled in mid-range with a series of doji candles indicating indecision from both buyers and sellers. A long lower shadow in yesterday’s trading suggest some bullish bias, yet there is little justification for a rally based on fundamentals.  

 

 

 

 

USDCAD

The USDCAD price action has narrowed considerably, as it moves back towards the lower bound of the current consolidation channel. Price action narrowing in this way can come before a breakout. The ascending trendline is approaching and has led to bullish rebounds in the past.  

 

 

 

 

XAUUSD

XAUUSD has pulled back after moving close to the 1906 resistance line, bullish conviction had been strong into the move and a new trading range has been established. Momentum indicators reflect the bullish bias, however, RSI is indicating that the metal is overbought. A reversal may be underway.

 

 

 

 

 

NDX100

The NDX100 sell-off in yesterday’s trading has been met with the return of buyers in the early Asian trading session.  Bullish moves have only gone so far as the trendline in recent months, with a clear bearish bias. Oscillations are likely to take the index back towards the 13,928 support line, once again. 

 

 

 

 

HK50

HK50 is beginning to move back towards the 25,117 resistance line, as scattered price action has a bullish bias, yet a solid rally is yet to form. Given the lack of support, a break seems unlikely as small-bodied candles just below the resistance area reflect indecision.