Forex trading long on GBP/USD, Gold forming symmetrical pennant? [Video]

In today’s Market Outlook, let’s take a look at Forex Trading on WTI and Brent Crude Oil, Gold, XAUUSD, and GBPUSD.

Yesterday’s PPI numbers were higher than expected, driving USD a bit stronger.

This creates a couple of problems for the US administration and the Fed.

The US Producer Price Index, or PPI, is an indicator of inflation at the wholesale and manufacturing level and is therefore an earlier inflation indicator than CPI, which we saw earlier in the week.

The number indicated that inflation is on the way and on the rise so this means that the Fed may not be able to lower interest rates, hence the stronger USD.

This also creates a big problem for the US administration as this incoming inflation is clearly the result of the insane tariff wars.

However, as we know, these moves against the trend give us great opportunities to enter positions WITH the trend, like this case on GBPUSD.

There are others, so please take a look at all your USD charts.

We see the same price action, USD strength on gold but no real trend.

In fact, we see what could turn into a falling wedge with an oversold stochastic oscillator.

If we move out to the daily chart, we also see an oversold stochastic oscillator, and the same ranging market that we have been trading for weeks.

Or are we seeing price action narrowing into a symmetrical pennant?

Price action on Brent Crude has reached the upper trend line and has turned back down, and the stochastic oscillator has turned down from overbought.

Interestingly, if we look at the sister commodity, WTI, we see a more aggressive drop and, in fact, a gap to the downside, indicating that price on Brent may have more to fall.

That’s all for now.

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