Undoubtedly, the past week has provided a lot of excitement for the traders of British Pound and his pairs . The UK’s upcoming exit from the EU and the flow of new information on the state of the talks between stakeholders – added fuel to the fire – the pound has grown at an unprecedented rate. The last two weekly candles are close to +800p for GBP/USD.
But we know that the emotions in this currency are not over yet. Saturday will be another important decision – the UK Parliament will vote on whether or not to accept the ‘divorce deal’ signed on Thursday. Expecting such unusual movements on these pairs I preferred to focus on more predictable instruments that are temporarily less sensitive to news from the world of politics, although I have an impression that under Donald Trump’s presidency there are fewer and fewer such instruments …:(
On Monday I analysed the Silver. At that time the price was approaching the resistance of the downward channel and the upper limit of the Inside Bar (upper chart).
SILVER 14-19.10.2019
In analysis from Monday I wrote: “On chart H4 we can see that the price is currently in an important position. The upper IB limit coincides with the supply zone (blue) and additionally the resistance of the downward channel passes here. Such a confluence usually increases market interest and if this resistance is overcome, we can expect influx of buy orders or, in case of rejection, sell orders. Therefore, it is worthwhile to observe the price behavior of this commodity and join when the appropriate price action signal appears. Permanent overcoming of this resistance may direct the market to the price at the level of 18.57. However, if the price successfully overcomes the lower level of IB (17.32) it would be worth taking short positions with the target of 17.03. “
Looking at the current situation, we can conclude that the confluence of resistance withstood the pressure of buyers and the price turned back towards the lower IB limit, overcame it but reached only 17.14 . and turned north. Currently, at the close of Friday’s session the price is a few cents above the channel resistance. Probably next week we will see a further increase in the price of this precious metal.
AUDUSD 17-19.10.2019
The second analysis of the passing week was “AUDUSD – time for correction ?”
I wrote on Wednesday so: “On chart H1 we can see that the price is below the next local downward trend line. If it is overcome, we can expect a continuation of the upward trend correction. The growth scenario is supported by today’s information about the close conclusion of the USA trade agreement China and additionally by the growth divergence on the daily chart. “
The above chart proves that the upward correction was continued, we still have upward divergence in the Daily chart, so it promises that this is not the last word of buyers.”
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