GBP/USD – POUND/DOLLAR SET TO TEST KEY SUPPORT ZONE
The GBP/USD which failed to continue making higher highs after it made a break above 1.3129 pulled back below this level and has been trending lower since then. At the moment, the pair is set to test it key support zone 1.2667 – 1.2603. There is enough room for profit taking for traders who may go short within 1.2798 – 1.2867 to make up to 1.2667 – 1.2603 support zone.
Traders not already short may look out for price retracement to the 12 period EMA on the daily chart this week and place their stop above 1.2867 to join the current downward momentum.
XAUUSD – SPOT GOLD CONSOLIDATING UNDER KEY RESISTANCE
We saw spot gold make a break above it key resistance level 1293.98 two weeks ago but failed to close above this level. Throughout last week the pair found shelter just below this key resistance level and failed to break above it. In spite of this, the uptrend for this pair remains intact and we shall continue to maintain our bullish bias on spot gold for this week as long as price remains above 1272.98 key support level. More aggressive traders may look to go long even as price remains below 1293.98 key resistance upon retracement to the 12 period EMA on the daily chart whiles pretty conservative traders may want to wait to see a clear push above 1293.98 before going long.
U.S STOCK INDEX S&P 500 CONTAINED UNDER KEY RESISTANCE
The S&P 500 which has been trending upward since the beginning of this year has retrace slightly below key support level 2458.13 and has remain contained below this level over the past few days. The underlying price action dynamics suggests that the current bullish momentum for the stock is not ending anytime soon since lower prices were clearly rejected as they approached 2414.64 key support level. A push above 2458.13 will signal the resumption of the up move and we shall be bullish over the medium term as long as the stock remains above 2414.64 key support level.
NOTE AND DISCLAIMER: THIS ANALYSIS WAS DONE AT THE CLOSE OF TRADING SESSION ON THUSDAY, AUGUST 24TH 2017 AND IT IS STRICTLY FOR ANALYSIS PURPOSE ONLY.
Author: E.O. ESSIEN
(FOREX MARKET TECHNICAL ANALYST)
Email: elijahotoo.eo@gmail.com (0240080104)
