GBP/USD further increase expected
Price has increased in the second part of the day and has managed to resume the minor upside momentum. The greenback was ruined by the FOMC and now could drop much deeper versus all its rivals.
GBP/USD moves within an ascending channel, maintains a bullish perspective in the upcoming period, even if we’ll have a minor consolidation in the upcoming weeks.
As you already know, the Federal Reserve has maintained the monetary policy unchanged, the Federal Funds Rate remains steady at 1.25%, matching expectations, but unfortunately these decisions have demolished the USD.
USDX plunged after the FOMC Statement and now is located below the 93.50 psychological level, should drop much deeper after the retest of a strong dynamic resistance. The dollar index is very heavy right now and looks unstoppable, could approach the 92.49 major static support.
Price rallied in the last few hours and is very close to jump above the 1.3125 previous high, could touch also the first upside obstacle from the 150% Fibonacci line (ascending dotted line). Technically should increase further after the retest of the upper median line (UML) of the major descending pitchfork. I’ve said in the previous articles that the sentiment will change drastically if the rate will stabilize outside the major descending pitchfork.
I’ve also said that we’ll have a buying opportunity if will come to retest also the warning line (wl1), this scenario is still possible, it was too risky to buy the retest of the UML has shown some exhaustion signs.
You can see that GBP/USD is trapped within an ascending channel, could still reach the upside line of this pattern if the USDX will slide further, the next major upside targets ar at the lower median line (lml) of the ascending pitchfork and at the 1.3527 level.
Gold rallied as expected
The gold edges higher and resumes the upside movement, is trading right above the $1260 per ounce and most likely will target the 1295 level.
Has broken above the outside sliding line (descending dotted line) of the major descending pitchfork, we may have a buying opportunity if will close above this level. I’ve said in the previous report that the Gold is located in the buyer’s territory after the breakout from the descending pitchfork’s body and from the minor descending pitchfork’s body, has come only to retest the 38.2% retracement level and the warning line (WL1) before has jumped higher.
Brent Oil at new highs
Price is strongly bullish and could take out the resistance from the sliding line (SL) in the upcoming days, a valid breakout from the descending channel will drive the rate towards the next upside target from $53.03 per barrel. Brent could take advantage of the weaker dollar to reach new highs in the upcoming period.
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