The price grew up and is trading in the middle of the consolidation again. The boundaries of the range are: the support 1.2263 and the resistance 1.2411 – 1.2426. Given that large volume is concentrated inside this range, we should wait for the exit of the price from it, which will be a great signal for entering the market. The breakout move must be supported by the large volume, in order to insure us against a fake breakout.
Yesterday GBP/USD soared and broke out the previous resistance level/the upper limit of the consolidation, which is an excellent bullish signal. Moreover, the movement was supported by the very large volume, which only increases its importance. It is also worth highlighting a new level of support of 1.3970, which is the beginning of a sharp breakout price growth.
Thus, all factors indicate that we should give preference to long positions for the pound. You can enter the market after a small downward price correction to get a more profitable entry point. Stop loss is worth putting under a new level of support. The potential of the deal is 120 points.
The Yen is still trading in the local consolidation of 105.43 – 107.83, so our previous trading scenario remains relevant. We can consider new deals here only in case of the sharp exit of the price from the range. The breakout movement must be supported by the large volume, so it will be a more reliable and accurate signal for entering the market.
Until that, we should skip this instrument from our trading plan.
The Canadian dollar showed a smooth adjustment yesterday, but given that the fall was on the small volume, we can’t regard it as a reversal signal. Moreover, there is a strong uptrend, so we still should give advantage to long positions with this currency pair.
We can enter the market only after a resumption of the rise and a sure breakout of the local maximum. A stop loss should be placed below the breakout bar. A potential of the deal is around 100 points.
The Australian dollar continued its upward correction, but is still located below the level of resistance 0.7745 — 0.7757, so that we should give preference to short positions here. We can open sales after the price stops to grow and resumes its sharp fall. A stop loss should be placed above the resistance. A potential of the deal is around 80 points.
While the pair is located within this range, we should stay out of the market.
The price tested the level of support/lower limit of the consolidation 1310.40 – 1313.10 and then demonstrated a sharp growth on the increased volume. So we can state that gold is still trading in the local consolidation between the support and the resistance 1328.90.
As can be seen from the volume chart above, the large volume is concentrated within this consolidation, so the best decision with gold is just to wait for a confident exit of the price from it. The breakout movement must be abrupt and supported by the large volume, which will be a more reliable signal for opening new deals here.
While gold is trading inside the range, we should stay out of the market.
The sentiment: this indicator totally affirms our scenarios with the Pound, Canadian and Australian dollars, which is a good confirming signal for us. Thus, there instrument should be in priority today. According to the sentiment, we should give advantage to long positions with the Euro and gold and to short positions with the Yen, but we still need to wait for exits of these pairs from consolidations.