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End of Week Report 1 Feb

Angus Irvine

Gold Weekly Recap
Last week, Gold finished positively after making a double defence of the 1276 support, ending last Friday's session above 1300. This facilitated a positive start to this week with the first objective being the 1325 resistance area. This is what happened when it touched a high yesterday at 1326 before falling back for the close. Early trading today sees prices softer again and it is possible that there will be some end-of-week profit taking. Even if this happens, the Bulls retain overall control in the medium to long-term.

Gold the Week Ahead
Gold has behaved technically very well this week after triggering a buy indicator last Friday and reaching its first objective at 1325. This was a pivot price and a heavy work area throughout March and April 2018 (circled on the chart). The longer-term objective is at 1366, a high failure from 11th April 2018, and the point where a prolonged Bear move began. Early indications today show potential for end-of-week profit taking but as long as Gold stays above 1300 on a closing basis, then the Bulls retain control. If 1300 gives way, then nerves could surface however, the major support in this market remains down at 1276.

Last week GBPUSD closed above 1.3169, the 38.2 Fibonacci Retracement of the big move down that began in April 2018. Breaching this price also ended a pattern of lower-highs and lower-lows, basic Dow Theory defining a Bear trend. Staying above this point was short lived as the Bears re-emerged on Monday and took control for most of this week. This does not mean that the bounce, or correction, is over however, the Bulls need to be ready to defend the 1.300 support if they wish to avoid further selling.

VIBHS Financial Review

Source: https://www.vibhsfinancial.co.uk/vibhs_news/currency-update-01-feb-2019-fx-cfds-news-daily-chart-cable-gbp-usd-february-gold-jpy-currencies-vibhs-2019-majors-brexit.cfm
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