Gold price is showing flat dynamic since the end of August in 25$ range below 1214$ level. The Cayman indicator is in overbought zone still, showing 77% of the buyers. Bulls lost all of the weekly profit on the last Thursday and Friday, when the US dollar grew against majors.
However, Gold price is moving in downtrend channel still, but bullish corrections become stronger and stronger. It means, that there is might be the end of the downtrend soon. Experts believe in falling to the low of September – 1187$. That is why we recommend to sell Gold from 1200$ level or higher with Take Profit at 1160$ level.
The British pound was the strongest opponent of the US dollar on the previous week. The GBPUSD pair continue growing from the 1 year low (1.2660 level). You can see on the daily chart, that bearish trend fades out now and each subsequent correction is stronger than previous one. Also there was a “morning star” signal in the middle of August. Since then the GBPUSD pair grew for almost 300 points.
Technical picture is bullish now. First, the Cayman indicator updated a multi-month minimum to 49%. Second, long shadows support bullish attitude and we believe in rising of the British Pound against the US dollar after the pair breaks 1.31 resistance level. So, we recommend to buy GBPUSD at the current prices and higher until 1.33-1.34 levels.
So, our signals for:
GOLD – is selling to 1160$,
GBPUSD – is buying to 1.33 level