GBPUSD Shows Signs of Reversal with Rising Wedge Pattern

Traders' Opinions

Summary:

The rising wedge pattern on GBPUSD indicates a potential trend reversal, and the break of the wedge to the downside supports the bearish outlook. The short-term target for this pair is at 1.2000, and traders should monitor the price action carefully for potential opportunities to enter a short position.

SELL GBPUSD

Close Time

CLOSED

1.22300

Entry Price

1.20000

1.24000

1.24162 -0.00041 -0.03%

138.2

Pips

Loss

1.20000

1.23682

Exit Price

1.22300

Entry Price

1.24000

GBPUSD Shows Signs of Reversal with Rising Wedge Pattern_1

The GBPUSD pair has been on a bullish trend in the mid-term, while moving in a descending channel long-term. However, recently, the price touched the upper part of the downward channel, which acted as a resistance and rejected the price. Moreover, a rising wedge pattern foundation has been formed on the top of the trend, which indicates the trend reversal.

Currently, the GBPUSD is unable to test the resistance formed by the previous high, and the price is pushing away from the local descending resistance line. It raises the question: what's next for this pair?

GBPUSD Shows Signs of Reversal with Rising Wedge Pattern_2

There is a good potential for selling GBPUSD after the breakout of the rising wedge on H1 timeframe. The price is breaking below the 20 EMA and Dxy is pushing to the upside as well, further supporting the bearish bias. Based on this, the short-term target for this pair is at 1.200

It's worth noting that the rising wedge pattern is a reliable technical indicator that signals a trend reversal. It is formed by two converging trend lines, where the upper trend line is sloping upwards and the lower trend line is sloping downwards. As the price approaches the apex of the wedge, it indicates that the buyers and sellers are in a state of equilibrium, and a breakout is imminent.

In this case, the price has broken out of the rising wedge pattern to the downside, indicating a high probability of a trend reversal. The next support level for this pair is at 1.200, which is also a key psychological level.

Moreover, the rising wedge pattern is accompanied by a rejection at the upper part of the long-term descending channel. This rejection adds more confirmation to the bearish outlook for GBPUSD.

TRADE RECOMMENDATION

SELL GBPUSD

ENTRY PRICE:1.22300

STOPLOSS : 1.2400

TAKE PROFIT :1.2000

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Warren Takunda

Traders' Opinions

Summary:

Gold prices have shown strong bullish signals, and with the Fed's announcement of a possible pause in interest rate hikes, gold remains an attractive investment option for speculators. Traders can wait for a pullback at the H1 order block and get a lower time frame trigger to enter the market with the goal of targeting the next resistance at 2020 and the ultimate resistance at 2018

BUY XAUUSD

Close Time

CLOSED

1992.00

Entry Price

2020.00

1970.00

2795.22 +1.00 +0.04%

220.0

Pips

Loss

1970.00

1969.88

Exit Price

1992.00

Entry Price

2020.00

Gold Prices Surge Following Fed's Interest Rate Hike Pause_1

Gold prices have surged by 2% following the announcement by the US Federal Reserve that it may pause its interest rate hikes. The Fed's suggestion that it may stop raising interest rates soon is a result of the recent collapse of two US banks, which has created economic and financial uncertainty. This uncertainty has made gold a more attractive investment option for speculators, who tend to find gold more attractive when interest rates are low.

From a technical analysis perspective, gold prices have been showing bullish signals. The market did not go lower, instead, the price updated swing highs and made an impulse leg by breaking through the resistance zones. The market then pulled back to the swing zone and is now testing the main level at 2000. The market has formed an ascending channel after breaking the descending channel, and there is a high probability of gold prices getting rejected from this zone and continuing in a bullish trend.

Gold Prices Surge Following Fed's Interest Rate Hike Pause_2

Looking at the H1 order block, it is the most potential zone to make the pullback over. Traders can wait there and get a lower time frame trigger to enter the market. The next resistance is at 2020, but the ultimate goal is the resistance at 2018. With the Fed's announcement of a possible pause in interest rate hikes and the recent economic and financial uncertainty, gold prices are likely to continue to surge, providing traders with profitable opportunities.

TRADE RECOMMENDATION

ENTRY PRICE : 1992

STOPLOSS : 1970

TAKE PROFIT : 2020

Risk Warnings and Disclaimers

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King Ten

Commodity

Summary:

The slope of the rush was too steep, so traders still need to watch out for the possibility of a small retreat in gold prices or even a shock peak in the short term.

SELL XAUUSD

Close Time

CLOSED

1999.00

Entry Price

1960.00

2030.00

2795.22 +1.00 +0.04%

256.7

Pips

Profit

1960.00

1973.33

Exit Price

1999.00

Entry Price

2030.00

Fundamentals

Gold prices rose slightly during the Asian session on Friday (March 24), and are currently trading around $1988 / oz. As the impact of the Fed's dovish rate hikes is gradually fading, the turmoil in the European and American banking sectors has eased. With the current growing wait-and-see sentiment of the bulls and bears, the market is less volatile today. However, last night, US Treasury Secretary Janet Yellen changed her tune and declared that she was ready to take additional deposit actions if necessary, that is, by taking strong measures to ensure the safety of the banking situation. This could once again use important anti-contagion tools, easing market concerns and raising risk appetite. Meanwhile, gold prices retreated after rising last night, reaching as high as around 2003.

In the medium and long term, global central banks have entered the end of the interest rate hike cycle, with a hidden danger of spreading risks still existing in overseas banking systems. Several factors will largely support the trend of strengthening gold prices, which include the weakening of the US economy, the rise in expectations of interest rate cuts during the year, and the continued weakening of US Treasury yields. However, due to the recent sharp rise in gold prices with a steep upward slope, it is not recommended to chase higher at present but is suitable for activists to test short positions at highs lightly.

As the March PMI data of European and American countries will release this trading day, investors should be advertent, especially the US durable goods orders for the February monthly rate, which is expected a month-on-month increase of 0.6%. In addition, the speeches of Fed officials also need attention.

Technical Analysis

Looking at the daily chart, prices have been volatile and rising. MACD has formed a golden cross pattern, with the average system’s multiple arrangements. Gold prices are biased towards bulls, the initial resistance is around the 2000 mark, and the high resistance of this week is around 2010. An effective break of this resistance will increase the bullish signal for the future. Resistance at the August 7, 2020 low was around 2016 and then near the 2030 mark.

However, we also need to pay attention to the fact that the 2000 mark is still a strong psychological resistance level, which has failed to effectively break through twice, but only three. We still need to watch out for the possibility of a slight retreat in gold prices or even a shock peak in the short term, with initial support at the 1980 mark, followed by support around the MA5 around 1974. The high point support on February 2 was near the 1960 mark. An unexpected loss of this support will weaken the bullish signal in the market outlook. Before losing the MA5, the market is still biased to the upside.

It is recommended to continue to buy low and sell high around 1960-2000 in the short term. XAUUSD: The Trend Remains Unchanged, While the Highs May Fluctuate_1

XAUUSD: The Trend Remains Unchanged, While the Highs May Fluctuate_1

Trading Recommendations

Trading Direction: Short

Entry Price: 1999.000

Target Price: 1960.000

Stop Loss: 2030.000

Support: 1960.000/1940.000

Resistance: 2010.000/2030.000

Risk Warnings and Disclaimers

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Saif

Forex

Summary:

Switzerland's interest rate decision leads the market.

BUY CHFJPY

Close Time

CLOSED

144.022

Entry Price

146.033

142.804

169.557 -0.013 -0.01%

201.1

Pips

Profit

142.804

146.033

Exit Price

144.022

Entry Price

146.033

Fundamental analysis

Fundamentally on this pair CHFJPY we see today's interest rate decision has been released in Switzerland at 1.5% Higher than the previous result of 1% Which give strength to the CHF as a currency On the other hand we have tomorrow's CPI inflation rate in Japan with market expectation at 3.1% Lower than the previous result at 4.2% Which is this lead to a weakness for the Japanese yen.

Switzerland Policy Interest Rate

Previous 1% Actual 1.5%

Japan Core CPI YoY

Previous 4.2% Expected 3.1%

Technical analysis

In this 4 - hour diagram chart, the market price now is 143.151, we expect the market to push up the price to the previous supply zone at 144.000 then we expect the price to create a sideway movement inside this supply zone and then we expect the price to push even higher to the oldest supply zone at 146.000 supported by (Inverted head and shoulders) as a market structure with 20 moving averages pointing up.

Trading Recommendation

Trading Direction: Long

Entry Price:144.022

Target Price:146.033

Stop Loss: 142.804

Risk Warnings and Disclaimers

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Eva Chen

Commodity

Central Bank

Economic

Summary:

After climbing above $1980 during the European session, gold lost bullish impetus and retreated into the $1975 range. The yield on the benchmark 10-year Treasury note rose more than 2% intraday above 3.5%, forcing gold lower ahead of the New York session.

BUY XAUUSD

Close Time

CLOSED

1986.94

Entry Price

2050.00

1926.00

2795.22 +1.00 +0.04%

66.2

Pips

Profit

1926.00

1993.56

Exit Price

1986.94

Entry Price

2050.00