Bearish Breakout On The Cards For GBP/USD?

• 4 Mar 2020

USD/JPY

The USD/JPY pair continues to come under pressure from sellers resulting in price action heading back towards the 107.01 support level. Buyers have since returned at this price level. A previous trading range between the 104.97 and the 107.01 price levels may become a target. Momentum indicators have sharp bearish trajectories with RSI testing the 30 oversold line.  

 

 

 

 

EUR/USD

The Eurodollar has come under pressure as the rally approaches the 1.120 resistance area which represents a recent top. Selling pressure has taken the pair back to test the 1.116 resistance level. The return of selling activity could spell the end of the rally. Momentum indicators have sharp upward trajectories, however, RSI is now testing the 70 overbought level. 

 

 

 

GBP/USD

The GBP/USD pair has once again rebounded from the 1.274 support area yet sellers remain active. The pair is approaching the apex of a descending triangle which is likely to result in a bearish breakout. Significant momentum will be required to move into a new trading range. Momentum indicators remain bearish territory.

 

 

 

USD/CHF

The USD/CHF sell-off has been stalled by buying pressure which has kept price action above the 0.953 support level. A doji candle in early trading today indicates indecision. The longer-term trend is bearish. Momentum indicators have sharp downward trajectories, however, RSI is testing the 30 oversold line. 

 

 

 

USD/CAD

The USD/CAD pair remains volatile with buyers and sellers dominating alternate trading sessions. The 1.342 resistance line represents a recent ceiling for the pair. Given the prospect of rate cuts from the FED we may expect the Dollar to weaken sending the pair lower. Momentum indicators remain in bullish territory yet RSI is pulling away from overbought conditions.  

 

 

 

SILVER

Buyers have returned to Silver in emphatic fashion, taking price action through several resistance levels to test the 17.42 price line. Selling pressure remains as denoted by the long upper shadows. Momentum indicators remain in bearish territory, with RSI pulling back from oversold conditions. 

 

 

 

GOLD

Gold buyers have returned to facilitate yet another rebound in price action at the ascending trendline. The next target is therefore the 1609.97 resistance level. There appears to be a lack of appetite from buyers as price action has failed to reach this price area. Momentum indicators have resumed upward trajectories after a pullback. 

 

 

 

OIL

WTI appears to have found a bottom at the 43.70 support level with buyers returning. Conviction is waning, however, as the commodity has failed to reach the 49.46 resistance area. A series of doji candles indicate in decision as the market awaits more macroeconomic news. Momentum indicators are mixed with MACD stalling in bearish territory and RSI pulling away from oversold conditions.