Trading short on Gold (XAU/USD), trading long on GBP/USD [Video]
|Will the bull run on GBP continue?
I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at Gold (XAUUSD), the USD Index, Brent Crude (UK Oil), GBPCAD, and GBPUSD.
Yesterday we looked at the strength of GBP and we see that there has been a pullback on almost every pair.
Price action on GBPUSD has hit this lower trend line but be aware of a few things.
Andrew Bailey will be speaking today, on the economy; the Stochastic Oscillator looks a bit confused, and price action seems to be forming a rising wedge.
We suggested waiting for a pullback on GBPCAD before going long.
We have that, and the stochastic oscillator is quite oversold.
However, as we all know, CAD is affected by the price of Crude.
Price action on Brent Crude filled yesterday’s gap and has hit this upper trend line.
The stochastic oscillator is almost overbought but there is a fundamental story of which to be aware.
The European Union has failed to agree on a price cap for Crude Oil purchases from Russia which has seen the price go higher
We promised to look at the USD Index and we see price action hitting this upper trend line and the stochastic oscillator looking overbought and turning over.
However, we also see a falling wedge so we will keep an eye on this.
We see a few bearish signs on Gold in the Parabolic SAR and the MACD signal line emerging from the histogram.
The stochastic oscillator is turning from overbought very early which is also a bearish sign.
And, finally, don’t forget to register for tonight’s webinar on Quantitative Easing and how to use it in trading.
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