The strongest currency: JPY (currently weakened, relatively oversold).
The weakest currency: GBP (currently a bit stronger, slowly stepping into the overbought territory).
The leading markets:
- XAUGBP - trending up;
- XAUUSD - trending up;
- XAUAUD - trending up;
- NIKKEI 225 - trending down;
- GBPJPY - trending down.
Here are the key points of chart analysis for XAUGBP:
- Trend. I find the trend clearly up and its deviation from the blue indicating its acceleration.
- Support. I find the key major support above the prior major top, at the pink parallel, in the middle of the small range, at about 785. Minor support: several layers at prior minor highs, Fib levels or bottoming bar tops (792, 800, 825 and 832).
- Resistance. If current high at 874 fails to hold, the first resistance is probably on the pink parallel that is making an upper border of the big channel, and that would be at 900.
- Trading opportunites: entry at one of the support levels, with a stop-loss order below some prior low, looking to exit at some resistance with R:R of at least 1:1.
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