GBP/USD is under pressure but the bulls could be on the verge of making a move which would be anticipated to be a significant correction in the days ahead.
The following illustrates the market structure and prospects of a reversion along the Fibonacci retracement scale.
The M-formation is a bullish reversion pattern with a high completion rate whereby the price would be expected to revert to the neckline of the pattern. However, in this case, the pattern is overextended:
In this scenario, the 38.2% Fibonacci could well be a more achievable target given the strength of the sell-off.
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AUD/USD is poised for further downside for the week ahead, but that will depend on a key area of support giving out and traders will be looking for a catalyst in this week's inflation data from Australia.
USD/JPY kick-starts Monday’s session on a flat note as uncertainty loom amid aggressive Fed. Soaring inflation and lower unemployment levels are indicating a jumbo rate hike from the Fed.
Gold is displaying a mild positive move in the early Tokyo session after a bearish Friday as the market is attracting volatility in a likely prolonged hawkish environment. The precious metal is drifting lower after failing to reclaim the psychological resistance of $2,000.00 last week.
Cardano (ADA) price looks to be on the cusp of booking a third consecutive losing streak. But under the hood, the Relative Strength Index (RSI) reveals that bulls are pushing against and are buying on the dips in a fade-in trade.
Another directionless week for equities as some initial enthusiasm was knocked on the head from firstly Netflix (NFLX) and then rising bond yields. Netflix found plenty of willing sellers but not too many willing subscribers.
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