GBPUSD BULLS FIND FOOTING
The pair continues to consolidate around its hourly 100 and 200 EMAs, which have flattened out , acting as a strong balance point for the pair as 1.1200 seems to be the price agreed upon by both bulls and bears. Support is at 1.1175, 1.1150 and 1.1125 while resistance at 1.1225, 1.1250 and 1.1275.
Cable bulls have found their footing as they look to build position around 1.2700 in an effort to stem the forceful bears. I they can maintain the pair above 1.2700 we expect a correction to the 1.2800 handle on both bargain buying and profit taking. However, should bears capture 1.2700, It is likely to open the way for the 1.2600 handle.
The pair has broken the neckline at 0.7600 and the bearish head and shoulder pattern has been confirmed for conservative traders too. The pattern dictates that the pair has further downside to 0.7575, 0.7550 and 0.7525. However, all may be void should bulls manage to capture 0.7630, which would negate the pattern and imply further upside with targets at 0.7650, 0.7675 and 0.7800.
Gold managed to close below the daily 200 EMA in a day filled with indecision. Currently 1265 has formed they equilibrium level for the precious metal with support at 1260, 1255 and 1250 while resistance lies at 1270, 1275 and 1280.