Will Gold Continue Rising?

Although I thought that Gold would continue falling towards $1200 it found support at $1207 and bounced off that level. If this move to the upside continues it is likely that Gold’s next target is around the resistance at $1246 – $1250. On the other hand, if it tests the support at $1200 again and manages to break below that level, it will likely continue falling towards the next level of support, which is at $1180 and coincides with (MA)89 on the daily time frame. Either way, we will have to wait until the market becomes a bit more volatile to know which scenario is more valid. Hopefully that will happen in the following days.

Daylight Savings Time Change

Since the market is very uneventful due to the holiday and most of it is closed anyway, I decided against posting an analysis today.

Instead I want to wish a happy Easter to everyone who are celebrating this holiday in the next few days!

Also, I want to use this opportunity to remind traders that in the following weeks various countries will be going onto, or coming off of Daylight Savings Time. For some people this will occur as early as this Sunday, so make sure to check when this is happening in your region, because that change in time definitely affects one’s trading habits.

Happy Holidays, everyone!

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GBP/USD Broke Below 1.4200

As I expected yesterday, GBP/USD broke below the support level at 1.4200. The question is what follows next? Its first target – and first level of support – would be at 1.4150. I think it is quite possible for the pair to break below that level too, and soon. Should that happen, it will likely continue falling towards the previous low at 1.3830. A possible breakout below the support at 1.3830 could, in turn, lead to the pair revisiting the historical low at 1.3500. That, of course, is a very long-term prognosis. For now though I have opened short positions and I intend to keep them open for the foreseeable future.