Gold is not slowing down. The breakout of the upwards channel formation has really stopped all demand here. The sell signal was confirmed when the price broke the 1,304 USD/oz support, which has been a crucial level since 2015. Bearish momentum is now very strong and there’s a high chance of reaching the 38.2% Fibonacci level at 1,277 USD/oz. This could be an interesting support, especially since 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 that the pair is creating and inverse head and shoulders pattern. Friday’s worse-than-expected 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.
GBPUSD is another pair with an iH&S pattern in it. It is also a long-term occasion but a bit worse to be honest with you. The pair has already broken the neckline and is now testing it as the closest support. The test so far has a seemingly random outcome as we currently can’t 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, a breakout should give us a signal to sell.