Dukascopy Bank Team
Dukascopy Bank SA
XAU/USD 1H Chart: Channel Down
Comment: Considering there is a bearish channel emerging in the hourly chart and the rate is right at the upper boundary of the pattern, gold is well-positioned for a sell-off. This decline could potentially extend down to 1,075 before there is a significant bullish correction within the channel.
Nevertheless, while the four-hour indicators are in favour of such a scenario, there are plenty of counter-arguments. First, there is a solid demand area around 1,090, created by the 200-hour SMA. Secondly, the hourly and daily studies are mostly pointing upwards. If XAU/USD manages to close above 1,095, the price will probably rise up to 1,110 dollars per ounce.
GBP/JPY 1H Chart: Falling Wedge
Comment: GBP/JPY has been in a strong down-trend for a while now (since December). However, even though still weak but there is a sign that there soon might be a reversal, being that the pair has formed a well-defined falling wedge. The chance of a rebound is also increased by the fact that the price is close to a major support level 168, where the weekly S1 merges with the October 2014 low. If this is the case and the rate gains a foothold above 170.50 yen, the first important target will be the 200-hour SMA and the weekly pivot point near 172.50, followed by the trend-line at 173.50. At the same time, below 168 yen the Sterling will probably aim for 164 yen, namely the 2014 low.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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