GBPUSD has raised through 1.2600 handle today and it may test 1.2650 levels. We would want to present an alternate scenario, which might turn GBPUSD bearish for the short term. A bullish gartley could be in the making, which could push GBPUSD lower towards 1.2080 before resuming higher again.
Gold structure remains unchanged over the long term as it continues to drift sideways after printing $1765 highs. A break below $1660 would confirm that the yellow metal is headed south and has carved a meaningful top at $1765. Conservative traders might wait until $1660 breaks, while aggressive traders might already remain short against $1765.
EURUSD bulls continue to remain in control as prices push close to 1.1150 levels. The structure is looking constructive for bulls and EURUSD should hit 1.1500 resistance in due time. Immediate support comes in around 1.0870, followed by 1.0775 and lower, while resistance is seen just above 1.1150 handle.
SPX500 has exceeded our projection for a bearish reversal by a few points. The indice hit 3067 (spot) highs yesterday and reversed lower to close around 3029 at close. A break below 2933 would be the first confirmation that SPX500 has topped. Furthermore, a break below 2766 would be certain that a top is in place.
USDJPY has drifted sideways since May 19, 2020, oscillating within a tight trading range between 107.40 and 107.95. The larger wave structure still remains bearish as long as USDJPY stays below 112.22 levels but we need to see a break out from the above range to decide the next big move.
GBPUSD might have resumed higher towards 1.2900, as Wave 5 termination. It has managed to print highs around 1.2360 yesterday before pulling back. Intraday support is seen towards 1.2290 and 1.2250 handles and if prices manage to drop there, GBPUSD should produce a bullish bounce. The currency pair remains poised to target major resistance at 1.3200, going forward.
Gold long term outlook continues to remain bearish but we are still waiting for a short term confirmation with respect to the wave structure and price action. The yellow metal has reversed from $1765 last week producing a Shooting Star candlestick pattern, indicating a potential bearish reversal. We need to see a follow through with 5 waves down, producing an impulse; to confirm a top.
EURUSD finally breaks out of the narrow trading range last week. The single currency had rallied tow3ards 1.1000 handle before pulling back again. It is seen to be trading just below the 1.0900 levels for now and might test 1.0860 lows before turning higher again. Overall, bulls might be back in control as the week progresses and EURUSD may push towards 1.1500.
SPX500 is progressing in Wave C higher potentially towards the 3000/3050 handle. It is sure to find strong resistance there and a sharp bearish reversal is expected. We shall be preparing to add further short positions on another high from here, as the down trend is set to resume lower. The next bearish leg is expected to be sharper and push towards 1700 levels.
USDJPY bulls have managed to rally towards 108.00 handle as expected and discussed earlier. The currency pair seems to have carved a lower high around 108.00 levels and is on its way to print below 106.00. The overall structure continues to remain bearish until prices stay below 112.22 resistance levels.
GBPUSD structure remains constructive for bulls as it carves a higher low around 1.2100 handle last week. The currency had rallied through 1.2300 levels yesterday before pulling back and is now seen to be trading around 1.2260 handle. It is expected to drop towards 1.2150 levels at least, before resuming higher.
Gold had rallied past $1747 last week taking us out of trade. Believe it or not, room for higher prices remain limited and yesterday’s high at $1765.00 might just be the top we have been looking for. Probabilities still remain for a push towards $1773 handle before giving in to bears. It is good to avoid getting into a bull trap.