Gold is still undergoing a bearish correction. Buyers should not be worried as it is nothing dangerous as we are still in a channel up formation above major long-term supports. Most probably, we should now get a decline towards the lower line of the channel up formation or maybe a but deeper – to the horizontal support on the 1315 USD/oz. As long as we stay above the 1307 USD/oz, the sentiment is very positive.
Next one is the EUR/GBP, which is sharply going down. That was expected by us in our yesterday’s analysis. The reason for this is a major downtrend and then a bullish correction, which ended on the 38,2% by drawing the double top formation. Candle from Friday is a nice shooting star and this shooting star tested the recent support as a newest resistance. Test was positive for the bears, which brings us here: to the major sell signal.
Last instrument is USD/CAD, where we are in a channel up formation. Most recently, the price bounced from the lower line of this pattern, which is good for a start. For the proper buy signal we have to see the breakout of the neckline of the inverse head and shoulders formation. For this, we still have to wait around 100 pips so stay sharp!