Three Nice Setups for Tuesday. Gold, EURGBP and USDCAD
Buyers should not be worried as it is nothing dangerous as we are still in a channel up formation above major long-term supports. Most probably, we should now get a decline towards the lower line of the channel up formation or maybe a bit deeper – to the horizontal support on the 1315 USD/oz. As long as we stay above the 1307 USD/oz, the sentiment is very positive.
Next one is the EURGBP, which is sharply going down. That was expected by us in yesterday’s analysis. The reason for this is a major downtrend and then a bullish correction, which ended on the 38,2% by drawing the double top formation. Candle from Friday is a nice shooting star and this shooting star tested the recent support as the newest resistance. The test was positive for the bears, which brings us here: to the major sell signal.
The last instrument is USDCAD, where we are in a channel up the formation. Most recently, the price bounced from the lower line of this pattern, which is good for a start. For the proper buy signal, we have to see the breakout of the neckline of the inverse head and shoulders formation. For this, we still have to wait for around 100 pips so stay sharp.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis