Weekly data: British pound and action on Gold ahead of UK inflation report and news coming up this week

Based on technical analysis the price is currently trading around the 1.24 price area which is a very strong point of resistance since it consists of the 61.8% of the fibonacci retracement level, the daily trendline which is valid since mid August and the psychological resistance of round numbers. Given this is a major resistance level on the chart the continuation of the downward movement is the most probable scenario on cable with the first point of support being the 1.105 price area which is a psychological support number and also the 50% of the fibonacci retracement level. There is no signal of oversold from the indicators so trading the direction of the actual release happening on Wednesday instead of entering now (except to scalp) might make sense.

Gold-dollar, daily

Following the US inflation report last week the number is slightly lower (8.2%) than last month (8.3%) gold continued the declining rally that is in motion for the last two weeks.  After the NFP release and the latest inflation report of last week ,the likelihood of 4.5-4.75% by the end of the year has increased significantly, now around 64%.

The price of gold has resumed the downward movement after finding resistance on the major trendline early October. The Stochastic indicator shows an oversold level possibly signaling a correction to the upside. If such a correction is initiated we would expect a resistance level around the $1690s price area which consists of a point on the trendline and also the 38.2% of the fibonacci retracement level. Given the price continues its bearish rally we would expect a support level at around the $1620s price area which consists of the lower band of the Bollinger bands and also the latest support area of the last swing,

The post Weekly data: British pound and action on Gold ahead of UK inflation report and news coming up this week appeared first on LeapRate.

gold