Your weekly outlook of technical patterns and structure.

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

Forex: GBP/USD

H1 Timeframe –

The GBP/USD is one of those currency pairs that responds well to correctly placed trendlines.

As you can see from the H1 chart below, short-term price action on the GBP/USD is poised to shake hands with a trendline support taken from the low of $1.2187. Joining this ascending support is a potential oversold signal from the Relative Strength Index (RSI) and a clear uptrend!

Commodities: WTI Oil

Daily Timeframe –

The price of WTI oil has been on the back foot since topping at $94.99 in late September, inking a series of lower lows and lower highs since.

The tide could be changing, however. Price action on the daily timeframe recently completed an inverted head and shoulders pattern (pattern low [head]: $72.22). What this means for technical eyes is that the unit has engulfed the pattern’s neckline, a small descending line taken from the high of $79.22, and opened the door for a potential run to the pattern’s profit objective residing at $83.42.

Equities: S&P 500

Daily Timeframe –

The CBOE Volatility Index (VIX), one of the most recognised and respected measures of expected equity volatility, shows volatility is at its lowest since early 2020 (pre-pandemic levels). This throws VIX support into the fray at 12.04, a level respected since mid-2018. A rebound from this base, coupled with the Relative Strength Index (RSI) on the daily chart of the S&P 500 displaying an overbought signal, could portend a correction in price action from resistance at 4,586.

Cryptocurrency: BTC/USD

Daily Timeframe –

Buyers and sellers have been busy chalking up a clear-cut ascending triangle formation between $37,999 and $34,758. Sharing chart space with the pattern’s upper boundary is the resistance between $38,523 and $37,624.

With price now testing the mettle of the pattern’s upper border (and said resistance zone) and understanding that the price of BTC/USD has been trending north since November last year, a breakout to the upside here could see price action target the pattern’s profit objective at $41,223.

Charts: Trading View

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