A Reversal For The GBP/USD Pair?

• 7 Dec 2020

USD/JPY

USD/JPY oscillations have begun to narrow, whilst maintaining the downward trajectory. The pair is moving closer to the apex of a descending triangle, where we may anticipate a bearish breakout. Momentum indicators have flattened in bearish territory.

 

 

 

 

GBP/USD

The GBP/USD pair has come under pressure since the break of the 1.338 resistance level, with selling pressure beginning to rise, highlighted by the long upper shadows. A break back below the resistance area would serve as some confirmation of a reversal. Momentum indicators are bullish with RSI testing the 70 resistance line. 

 

 

 

 

EURUSD

The Eurodollar has stalled before reaching the 1.222 price line. Small-bodied candles indicate indecision from the pair and given their position at the top of the rally; a reversal may be indicated. The Eurodollar surge has been largely supported by dollar weakness. Momentum indicators have upward trajectories, with RSI testing overbought conditions. 

 

 

 

 

USDCHF

The USDCHF pair has stalled around the 0.890 price line as bearish moves appear to be slowing down. The sell-off came after a period of consolidation between the 0.898 and 0.918 price levels. Momentum indicators are bearish with RSI testing oversold conditions. 

 

 

 

 

XAUUSD

XAUUSD has stalled between the 1810 and 1860 price levels as the rally has stalled mid-range. Overall there is a longer-term bearish bias, with the descending trendline acting as the resistance level. Momentum indicators have flattened in bearish territory.

 

 

 

 

HK50

The HK50 has rejected the 26,850.97 price line, with bearish moves sending the index back towards the 25,942 support level, as the pair is contained within the 25,942.79- 26850.97 range. Momentum indicators have begun moderate downward trajectories. 

 

 

 

 

JP225

The JP225 has moved back to the 26,500 support level which has represented a recent price high. Several tests have not resulted in a price reversal, so far. A period of consolidation may follow. Momentum indicators are undergoing reversals with RSI beginning to pull away from the 70 overbought line.