This Week’s Trade Ideas: GBP/USD, S&P500, Gold and Oil

GBP/USD sells off, S&P500 uptrend intact, gold strength continues, crude oil hits long-term resistance.

GBP/USD – sterling/dollar sells off, still contained under key resistance level

The GBP/USD has been contained below the 1.4730 key resistance level this whole year so far. The price recently tested it and got pushed back to the downside again, showing us that there’s plenty of selling interest in this market. We can see in the chart below both 1.4730 key resistance and the shorter-term resistance zone just overhead near 1.4430 – 1.4350; that resistance zone will be important this week. We will be watching for a price action selling opportunity up near that resistance zone on any temporary retrace higher, to rejoin the bearish momentum. With the upcoming Brexit vote scheduled for June 23rd, a referendum about whether or not Britain will stay in the eurozone, we urge traders to be very cautious as that vote draws nearer as volatility will certainly increase. We don’t recommend holding positions during that time or over the weekend around the event.

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GBPUSD

S&P500 – S&P500 uptrend intact

The S&P500 is in a long-term uptrend and we have been bullish (looking to buy) it recently. As long as this market remains buoyant above the key support level down at 2030.00 we will remain bullish. This week we will specifically be waiting for an opportunity to buy on the daily time frame. There has been some volatility in recent days in most other global equity markets, so this week might see a deeper retrace and added volatility.

SP500

Gold – gold gains continue

Gold surged higher over the last two weeks following a strong bounce up from 1200.00 key support. The price has now also reclaimed near-term support at the $1235.00 – $1244.00 area and we see the potential for more gains in the coming days, in line with this fresh upward momentum. We will be watching any retraces to the downside as potential buying opportunities this week. Conservative traders can keep a close eye on the 1 hour and 4 hour and daily charts for a price action buy signal this week, or for those more aggressive, consider a blind entry (entry without a price pattern as confirmation for entry) around that short-term support at $1235-$1244.

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GOLD

Crude oil – bearish reversal pattern my lead to more losses in oil

We have been carefully watching key long-term resistance up near $50.90 in the crude oil market in recent weeks as we have felt that it’s a strong containment area that could lead to a powerful reversal and subsequent decline in prices.  Notice that crude oil moved up last week to just above $50.90 long-term resistance and reversed there, creating a false break of that level. Whilst this was not a huge / convincing reversal pattern, it is a bearish (weakening) price pattern nonetheless and we now have a tentative short bias (downward bias) whilst the price remains below $50.90 major resistance. This week, if prices rotate back up into $50 – 50.90 resistance, we might see a price action reversal signal to confirm a potential selling opportunity.

OIL

This article was written by Nial Fuller. Nial is a highly regarded professional trader and author. He is the founder of Learn To Trade The Market, the worlds foremost trading education resource. To learn more, visit www.LearnToTradeTheMarket.com

 

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