Technical analysis of GBP/USD for January 25, 2019

Technical analysis of GBP/USD for January 25, 2019

2019-01-25

Overview:

The GBP/USD pair will continue rising from the level of 1.3048 today. So, the support is found at the level of 1.3048, which represents the pivot point in the H1 time frame. Since the trend is above the pivoti level, the market is still in an uptrend. Therefore, the GBP/USD pair is continuing with a bullish trend from the new support of 1.3048. The current price is set at the level of 1.3080. Equally important, the price is in a bullish channel. According to the previous events, we expect the GBP/USD pair to move between 1.3048 and 1.3139. Therefore, strong support will be formed at the level of 1.3048 providing a clear signal to buy with the targets seen at 1.3139. If the trend breaks the support at 1.3139 (first resistance), the pair will move upwards continuing the development of the bullish trend to the level 1.3222 in order to test the daily resistance 2. In the same time frame, resistance is seen at the levels of 1.3048 and 1.3222. The stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 1.2959 (below the support 1).

Technical analysis of NZD/USD for January 25, 2019

2019-01-25

Overview:

The NZD/USD pair breached resistance which had turned into strong support at the level of 0.6705 this week. The level of 0.6705 coincides with a golden ratio (61.8% of Fibonacci), which is expected to act as major support today. The RSI is considered to be overbought, because it is above 70. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100). Besides, note that the pivot point is seen at the point of 0.6882. This suggests that the pair will probably go up in the coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended to be placed above 0.6800 with the first target at the level of 0.6882. From this point, the pair is likely to begin an ascending movement to the point of 0.6882 and further to the level of 0.6984. The level of 0.6984 will act as strong resistance. However, if there is a breakout at the support level of 0.6705, this scenario may become invalidated.

Intraday technical levels and trading recommendations for GBP/USD for January 25, 2019

2019-01-25

On December 12, the previously-dominating bearish momentum came to an end when the GBP/USD pair visited the price levels of 1.2500 where the backside of the broken daily uptrend was located.

Since then, the current bullish swing has been taking place until January 17 when significant bearish rejection was demonstrated around 1.2999 (Bearish Engulfing candlestick around the downtrend line).

This paused the bullish scenario for a while, allowing sometime for bearish correction towards 1.2830 where another bullish swing was initiated. The GBP/USD pair is currently approaching the price level of 1.3070.

For the bullish scenario to remain valid, bullish persistence above the price level of 1.3000 (The previous Weekly High) should be maintained on a daily basis.

Bullish persistence above 1.3000 allowed further bullish advancement to take place towards 1.3135 (Depicted Supply level) where recent bearish rejection is being demonstrated.

Any bearish pullback towards the price level of 1.3000 (previous weekly high) should be considered for a valid BUY signal.

On the other hand, any bearish decline below 1.3000 may bring the GBP/USD pair again into a deeper bearish correction that may extend down towards 1.2800 (Nearest Demand Level).

Trade Recommendations:

Conservative traders can wait for bearish pullback towards 1.3000 (backside of the broken downtrend in RED) for a valid BUY entry.

T/P levels to be located around 1.3055, 1.3135 and 1.3200. Any bearish H4 closure below 1.2950 invalidates this scenario.

GBP/USD analysis for January 25, 2019

2019-01-25

GBP/USD has been trading upwards. As I expected, the price tested the level of 1.3135 and reached my third upward target. The previous swing high (now potential support) is on the test and there are no strong sellers to break it, which is a sign of strength. The key support at the price of 1.3000 held successfully and that is another confirmation of strength. The GBP/USD pair is trading now inside of the upward Pitchfork channel between the lower diagonal and the median line.

Resistance levels:

R1: 1.3160

R2: 1.3200

R3: 1.3277

Pivot : 1.3086

Support levels:

S1: 1.3045

S2: 1.2970

S3: 1.2930

Trading recommendations for today: We are adding the new long position from 1.3080 and upward target at 1.3173. Protective stop is placed at 1.3000.

Analysis of Gold for January 25, 2019

2019-01-25

We are still bullish about Gold from $1,285.00. There is no change in the forecast since the price failed to break the key support at $1,275.00, which only added more strength into our bullish position.

Background: In the background we got failed test of the Pitchfork median line inside of the downward channel but on the same time we got a test of the upper median Pitchfork line. For the past 4 days, Gold is trying to break the key support at $1,275.00 but without success, which give us more odds to be buyers.

Trading recommendation: We are long Gold from $1.285.00 and the first upward target at $1,294.00. The protective stop is placed at $1,275.00.