Summary:
- Potential reversal harmonic XABCD pattern on US100
- Gold is trading in consolidation range
- GBPUSD pulls back from 1.3000 handle
GOLD
GOLD has been trading in a sideways move recently. The upper limit of the consolidation lies at $1517 and the lower limit can be found at $1474. The support coincides with lower limit of the Overbalance structure, marking the biggest correction in a whole upward move started in August 2018. According to the methodology, as long as the price is above the $1474 handle, the main trend remains upward. Only a break lower could trigger a bigger downward correction. In such a scenario, the gold price could fall towards 38.2% Fibonacci retracement. On the other hand, a break above the topside resistance at the 1517 handle could pave the way towards the YTD highs at $1555.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
GOLD D1 interval. Source: xStation5
US100
The US stock market index, Nasdaq (US100), reached fresh ATH yesterday. However, the index is trading near a key resistance area now. The zone at 8280 handle is marked with the potential reversal point of harmonic XABCD structure - Butterfly. The formation is additionally bolstered by the range of upward movements marked with purple lines. A rebound from this resistance may lead to a bigger downward correction move. In such a scenario a 100% Fibonacci retracement should be considered as the nearest support. On the other hand, a break higher could see upward move accelerate and in such case 161.8% Fibonacci retracement could come into play.
US100 D1 interval. Source: xStation5
GBPUSD
Last but not least, let’s take a look at the GBPUSD currency pair. Market is waiting for the UK elections scheduled for December but looking at the daily interval, one can see that the pair has a problem with breaking above the 1.30 handle. A downward correction could be on the cards but it is not a sure thing. However, if this is so, the pair has a lot of room to fall. The key support lies at 1.2620 handle and is marked with the lower limit of Overbalance structure as well as 38.2% Fibonacci retracement. On the other hand, should buyers bring the pair above 1.30 handle, GBPUSD could eye a test of the resistance levels at 1.3170 and 1.3350.
GBPUSD D1 interval. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
