The GBPUSD chart in the H4 timeframe is clearly showing one of the worst losses for the pound in years. The British pound has shed more than 4 cents since Thursday evening GMT and this morning hit its lowest level in more than two years. The apparent resistance on the H4 timeframe is presented in the psychological area at 1.26 while the lower support is less clear, but 1.20 and 1.21 are both seen as important technical levels.
GBPUSD Technical Indicators H4 Timeframe
Moving averages in their usual combination indicate a strong sell-signal. The price is well below all 20 levels (in the Bollinger Bands indicator) as well as the moving averages indicators with their settings 50, 100 and 200. In contrast, these lines are all below each other without significant interaction in the last few weeks.
The bands of the Bollinger Bands (20, 0, 2) have widened significantly this week, indicating high volatility. At the time of writing, the Bollinger Bands are not indicating an oversold situation as the current candle is trading within the lower range of deviation. The slow stochastic (15, 5, 5) does not show an exaggerated saturation value here. Although both lines rose slightly from almost zero yesterday and this morning, they are still visible within the lower zone. At the same time, the MACD appears to support the continuation of the downtrend as seen on the chart after stretching well below the signal line.
Price and Fibonacci Behavior
The price behavior of GBPUSD on the H4 timeframe indicates the continuation of the downward movement, the three Black Crows candles appeared yesterday before seeing further losses this morning. Despite the appearance of a long-tailed Doji candle in the previous period, there is still no evidence of a retracement. It is possible that the current candle has ended on the morning star pattern, but with that in mind, there should be clear confirmation of what has not shown up so far. The descent seems the most likely.
The Fibonacci lines here are based on the most recent downward movement since last Thursday, the most important area in the near future is likely to be the 23.6% Fibonacci level as it does with the slowdown in momentum and the important psychological area at 1.22. coincides
important data points
Tomorrow evening’s FOMC GMT meeting is vital for Cable as well as all other currency symbols against the US dollar, particularly EURUSD and USDJPY. The 0.25 percent rate cut appears to be fully priced in. The likelihood of a rate cut or not will likely result in a complete change in the charts for most currency symbols pegged to the US dollar. Traders should also watch the Bank of England Monetary Policy Committee meeting on Thursday. Last but not least, Friday’s NFP news should be followed.
Summary of GBPUSD technical analysis
In general, the technical indicators of the GBPUSD currency symbol, H4 timeframes, show the continuation of the downward movement. Further losses in this week’s range so far are unlikely, but if unexpected positive news comes from the Fed, it could trigger another new sell-off in GBPUSD. Similarly, traders should monitor saturation indicators to identify retracements from oversold areas.
XAUUSD Technical Analysis
Gold hasn’t moved much against the US Dollar (XAUUSD) this week as price appears to have entered a profit-taking phase or perhaps a phase of correction and volatility. The main resistance for the next week is likely to be the last recorded high around 1437. At the same time, the support is also likely to be around the important psychological area of 1400. However, the decline currently seems unclear. However, the source of last week’s bullish move near the 1340 level is now likely to hamper the bearish move.
Technical indicators of gold against the US dollar XAUUSD
Moving averages with default settings give a strong buy signal. The price is currently touching the SMA 20 indicator after failing to break the low yesterday. We can clearly see the strong movement of the SMA 50 above its 100 and 200 moving average counterparts, with what is likely the most important support is the 1400 area, which it also illustrates after gold’s decline against the US dollar at the time of this writing .
The Bollinger Bands (20,0,2) do not show the declining gains of gold against the US dollar over the past week. Therefore we assume that dhe volatility and volatility will continue. The slow stochastic (15.5.5) still indicates buy. This is after the upward crossover that is now taking place at the oversold levels of the main lines of the indicator.
On the contrary, the MACD indicator is less clear as it shows a weak and uncertain sell signal. But since other indicators are unanimous in buying signals, the unclear MACD sell signal may become irrelevant for the time being.
Price and Fibonacci Behavior
The most recent price action in the XAUUSD H4 timeframe suggests a possible buy signal. However, the most recent period clearly indicates a weakening momentum. In addition, after the rally on Sunday morning, there was no clear resumption of the strong upward trend in Marriage. The low hit near 1400 yesterday morning before a doji candlestick pattern appeared.
The Fibonacci retracement lines here come after the big upward move that started in the second half of last week. We can see that the 38.2% correction is an important area that depends on price action during this week.
The zone may only be valid if it coincides with a clear signal from the Bollinger Bands indicator and the SMA 50 indicator. It is also possible that the retracement level is at 23.6 pivot points, but we need to get to one after the day’s close Wait for confirmation.
Summary of the XAUUSD technical analysis
In general, the technical indicators for XAUUSD, H4 timeframe, point to a rather weak buy signal. However, traders should also think and consider the larger time frames. An overbought sign on the daily chart means this is unlikely to be a good entry point for buyers. Although until Monday noon GMT it is unlikely that fundamentals will have a strong impact on the XAUUSD. However, traders shouldn’t ignore the US economic data this afternoon.