Your weekly outlook of technical patterns and structure.

The Research Team scans the financial markets for you, highlighting clear and actionable technical structures.

Forex: Sterling Under Pressure at Range Lows

As evidenced in the monthly and daily charts, a bearish picture remains for sterling against the US dollar.

GBP/USD recently denied $1.2715 resistance on the monthly scale, and demonstrates scope to pursue deeper waters from this area, targeting as far south as support from $1.2173.

On the daily timeframe, buyers and sellers are battling for position at range lows from $1.2540, though given where the currency pair is coming from on the monthly chart, things are not looking too bright for GBP longs at this point. Rupturing the aforementioned range low could unlock the trapdoor for another bearish push towards daily support at $1.2309-$1.2380.

Commodities: Whipsaw Below $2,000; Bear Trap?

Daily Timeframe –

Following on from last week’s analysis on spot gold (XAU/USD), you will note that the yellow metal did tunnel through the widely watched $2,000 level in recent trading and shake hands with support between $1,971 and $1,986—made up of an AB=CD bullish pattern (100% projection ratio), horizontal support as well as a number of Fibonacci ratios.

As you can see from the chart, buyers have responded from the upper edge of the support zone, and price is making its way back up to $2,000. A daily close back above the psychological level could encourage further buying, targeting local resistance around $2,038, followed by another layer of resistance on the weekly chart at $2,075.

Equities: S&P 500 Poised to Explore North of 5,000 Again

It is clear from all three timeframes—the monthly, weekly and daily timeframes—that the S&P 500, unsurprisingly, is trending northbound after having refreshed all-time highs this week at 5,048.

From the weekly chart, we can see that price remains around the 5,000 level after recovering from channel resistance-turned-support extended from the high of 4,607. Out of the daily chart, Tuesday came within touching distance of testing a support area at 4,869-4,903 before revisiting 5,000 (this support zone was highlighted as a possible area that dip-buyers could welcome in recent analysis).

Overall, this is a market that leans in favour of buyers and movement above 5,000 could open the door to further bullish scenarios for traders over the coming weeks.

Cryptocurrency: BTC/USD Powers Through $50K

Weekly Timeframe –

It is no secret that the price of BTC/USD has had a fruitful couple of weeks. Month to date, the major crypto is up more than +20.0% and is set for further outperformance according to chart studies on the weekly chart.

As evident from the weekly chart, price is inching through resistance at $51,952. Should a close form above this level, resistance then demands attention at $56,796, followed by another resistance a little further northbound at $64,900, by which point we are then teetering on the verge of challenging all-time highs!

Ultimately, then, this is a buyers’ market for the time being.

DISCLAIMER: The information contained in this material is intended for general advice only. It does not consider your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.