GU has broken straight through major and minor supports, as it has done before.
I see two scenarios playing out here:
1) Either price has broken through and is coming back to retest before continuing on its bearish movement
2) Price has broken through and is now retracing back to major support before consolidating and making a move to the upside.
I am leaning more towards 2) than 1) given that, as far as I am aware, the pound is quite bullish while the dollar, indicated by DXY, has been moving extremely bearish recently. Gold prices tend to experience a markup/Christmas rally which further leads me to believe that going short on the dollar here may be the better option right now.
With that being said, Brexit decisions (or the lack thereof) are likely to continue to have a draining effect on the pound.
Whether or not it will be enough to pull it beneath the dollar is something only time can tell.
I will wait to see what price does, but hope to enter for a long @1.34000 with a target @1.35000.
If this really is a break and retest then will enter on bearish confirmation with SL until minor resistance.
I see two scenarios playing out here:
1) Either price has broken through and is coming back to retest before continuing on its bearish movement
2) Price has broken through and is now retracing back to major support before consolidating and making a move to the upside.
I am leaning more towards 2) than 1) given that, as far as I am aware, the pound is quite bullish while the dollar, indicated by DXY, has been moving extremely bearish recently. Gold prices tend to experience a markup/Christmas rally which further leads me to believe that going short on the dollar here may be the better option right now.
With that being said, Brexit decisions (or the lack thereof) are likely to continue to have a draining effect on the pound.
Whether or not it will be enough to pull it beneath the dollar is something only time can tell.
I will wait to see what price does, but hope to enter for a long @1.34000 with a target @1.35000.
If this really is a break and retest then will enter on bearish confirmation with SL until minor resistance.