Your weekly outlook of technical patterns and structure.

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

Forex: GBP/USD Refreshes YTD Highs

Monthly/Daily/H1 Timeframes:

The British pound remains on the front foot versus the US dollar (GBP/USD), on track to pencil in a third consecutive month in the green with further outperformance possibly on the table.

Both the monthly and daily timeframes exhibit strong, clear uptrends. Monthly resistance was recently cleared at US$1.3111 (now possible support). Following a near-test of support coming in at US$1.2994, daily flow also demonstrates scope to navigate as far north as resistance from US$1.3477. In addition, limited resistance is visible on the H1 timeframe until at least US$1.3300.

Commodities: AB=CD Bearish Formation for WTI Oil?

Daily Timeframe:

Since rebounding from support at US$67.00 on 10 September, the price of WTI oil appears to be gearing up to engulf the resistance zone between US$72.53 and US$71.40 and chalk up an equal AB=CD bearish formation at US$75.19 (a 100% projection ratio). Complementing the level is a 50.0% retracement ratio and a 78.6% Fibonacci retracement ratio at US$74.98, together with neighbouring resistance at US$74.06.

Given the downtrend, whipsawing beyond the resistance area at US$72.53-US$71.40 could trip stops and provide sellers with sufficient liquidity to short from the AB=CD zone.

Equities: S&P 500 On Track to Print a Weekly Shooting Star

Weekly/Daily Timeframes:

Recent trading observed the S&P 500 refresh all-time highs of 5,689, invalidating an evening star bearish pattern on the weekly timeframe. What is interesting from a technical standpoint is that current movement is on track to finish the week out in the shape of a shooting star candlestick pattern (bearish).

The daily timeframe also ended Wednesday’s session by way of a bearish outside reversal pattern from resistance at 5,651. Daily support, therefore, calls for attention at 5,566, closely shadowed by the 50-day simple moving average at 5,514.

Cryptocurrency: XRP/USD Consolidating

H4 Timeframe:

Since mid-September, Ripple versus the US dollar (XRP/USD) has been carving out a symmetrical triangle, or ‘coil’, between US$0.5994 and US$0.5590. While some analysts may also refer to this structure as a bullish pennant pattern, these structures generally require a strong up move preceding them and better alignment between the pole (the move preceding the consolidation) and the pennant.

Depending on the direction price breaks beyond the above-noted pattern’s structure, breakout traders will likely target support from US$0.5322 or resistance from US$0.6153.

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