Home Forex Gold Wavers, GBP/USD Forges Symmetrical Triangle, Russell 2000 Eyes Breakout

Gold Wavers, GBP/USD Forges Symmetrical Triangle, Russell 2000 Eyes Breakout

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GOLD TECHNICAL ANALYSIS

After falling to multi-week lows last Wednesday, gold has recovered some ground in recent days; however, the rebound appears to be losing momentum, with prices approaching trendline resistance at $2,040. To gauge the future direction, it’s vital to see how XAU/USD reacts around this ceiling, keeping in mind that a breakout could usher in a move towards $2,065. Moving up, all eyes will be on $2,080.

In case of a bearish rejection around $2,040, technical support is positioned around $2,005. The precious metal might find stability in this area during a pullback before mounting a turnaround, but should prices fall below this threshold, the bears could initiate an assault on $1,975. Additional losses from this point onward could draw attention to the 200-day simple moving average.

GOLD PRICE TECHNICAL CHART

Gold Price Chart Created Using TradingView

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GBP/USD TECHNICAL ANALYSIS

GBP/USD has been in an uptrend since October of last year, but its upward impetus has faded in recent weeks, with cable entering a consolidation phase, as reflected by the pair’s coiling within what appears to be a symmetrical triangle.

A symmetrical triangle, composed of two converging trend lines, an ascending one connecting a sequence of higher highs and a descending one linking a series of lower lows, is usually considered a continuation pattern once confirmed.

This setup is validated once prices breach the triangle, especially if the move is in the direction of the prevailing trend. In the case at hand, GBP/USD might rally towards 1.2775 upon successfully clearing 1.2750. With continued strength, the focus could shift to 1.2830, followed by 1.3000.

On the other hand, if consolidation resolves to the downside and prices fall below support at 1.2600, the 200-day simple moving average will serve as the next line of defense against a deeper pullback. Shifting gaze downward, all eyes will be on 1.2455.

GBP/USD TECHNICAL CHART

GBP/USD Chart Created Using TradingView

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RUSSELL 2000 TECHNICAL ANALYSIS

Following a sharp selloff earlier this month, the Russell 2000 has rebounded recently, though it has encountered resistance near the psychological 2,000 level. The small-cap equity index’s ability to surpass this hurdle remains in question, but if a decisive breakout occurs, a retest of last year’s highs near 2,075 could be around the corner. On further strength, a move towards 2,142 should not be ruled out.

On the flip side, if sellers return and regain decisive control of the market, prices could head back toward trendline support at $1,925. The Russell 2000 could bottom out around these levels during a retrenchment before staging a turnaround; however, a breakdown could intensify downward pressure, paving the way for a drop toward 1,885.

RUSSELL 2000 TECHNICAL CHART

Russell 2000 Chart Created Using TradingView

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