Gold is not slowing down. The breakout from the channel up formation really crashed all the demand here. The sell signal was confirmed, when the price broke the 1304 USD/oz support, which is a crucial level since 2015. Now, bearish momentum is very strong and we have high chances to reach the 38,2% Fibonacci level on the 1277 USD/oz. That can be interesting support, especially that it was already used in January. That was a nice short-term selling opportunity and now time for something exactly opposite, so a long-term buying occasion – USDCAD. What is happening here is the price creating an inverse head and shoulders pattern.
Friday’s worse GDP data allowed the price to break the neckline of this formation, which formally gave us a buy signal. Today, the price is breaking the highs from February, which confirms the bullish strength. GBP/USD is another pair with the iH&S pattern in it. It is also a long-term occasion but a bit worse to be honest with you. The price already broke the neckline and is now testing it as the closest support. The test so far has a random outcome as we do not see a breakout or a bounce. As for now, it is a bit too early to say what will happen here. All I know is that any bullish pattern on the neckline should be a good buying opportunity. On the other hand, the breakout should give us a signal to sell.