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Midweek Report 23rd October

VIBHS Financial

Gold
Since exiting the previous range by breaching the 1214 resistance two Thursday's ago, Gold has settled into a new one with 1214 switching to the support column and 1238 capping the upside. This is the 38.2 Fibonacci Retracement of the sell-off that began last April. This Fib level has not been tested yet with the recent high being at 1233. This is a heavy work area from July and could be a tough area to breach (circled on the chart). The last few sessions has seen a narrowing of the daily range which has a pennant potential. If this happens and Gold breached 1238, then the upside target is quite considerable. Currently though, Gold appears to be consolidating.

Currencies
Any students of charting and analysis should monitor EURGBP currently as it is behaving perfectly from a technical perspective. On 7th September, it broke through a trend support line which that began in April. This also triggered the third leg in a five-move Bearish Elliot Wave pattern. This was completed on 10th October, posting a low of .8723. Text books would advise looking for a three-wave ABC correction, and this is what happened. Next to look for is where to pinpoint the potential end of the third corrective leg. A good reference point could be the 38.2 Fibonacci Retracement of the Elliot, and this comes in at .8866.

VIBHS Financial Review

Source: https://www.vibhsfinancial.co.uk/vibhs_news/currency-update-23-oct-2018-fx-cfds-news-daily-chart-cable-gbp-usd-october-gold-jpy-currencies-vibhs-2018-majors-brexit.cfm
Disclaimer
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