Cable, SP500 and GOLD reaching important S/R levels

American Dollar is undergoing a correction today and in the calendar, we do not have any potential game changers here so this movement is likely to last at least until tomorrow. On few instruments, we are close to the important supports, which indicate that this strength on the USD may end soon.

GBPUSD is reaching a combination of three important supports. First of all, we do have S/R level around the 1.28 which was well respected since the April. What is more, there is a 38,2% Fibonacci and the correction equality pattern. Any bullish price action will be a good buy signal here.

SP500 reached the long-term up trend line and created a hammer on a daily chart. That usually should be perceived as a strong bullish sign, especially if additionally strengthened by the horizontal support on the 2420 points.

Gold tested the 1300 USD/oz on Friday and created an evil looking shooting star. Despite that, the price did not fell sharply yesterday but still was able to create another bearish pattern – head and shoulders. Although there is no sell signal yet as we are still above the neckline. Breakout of that support is the thing that the sellers should be patiently waiting for.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis