GBP with a chance for a correction. Gold defends the most important support in the 2018

Since the middle of the April, Cable lost almost 800 pips. What a drop! We are getting first signals that it can be too much and now there is a time for the take profit action. GBPUSD reached a combination of two super important supports: long-term up trendline and the horizontal one on the 1.359. First reaction here is bullish so we can experience a further upswing aiming at least the 1.375 resistance.

GBPJPY is not so optimistic about the further rise. Here, the price broke the 150.50 support and confirmed that as the closest resistance. We also managed to deny the bullish flag, which triggers here a legitimate sell signal.

The last one is Gold, which is defending the ultra-important support around the 1307 USD/oz. That area holds the price for the whole 2018 so a breakout can trigger us a very strong sell signal. So far, so good but the buyers have to be very careful. On the other hand, the bounce from this place will trigger us a great buying opportunity with a desirable risk to reward ratio.

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