Hi Traders! Weekly summary and review August 20th, 2021 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find the short explanation of all the trade setups we had in this week and how it has currently developed now.
GBPJPY – My idea here was “On the H4 chart the price which was moving higher reached a strong resistance zone (marked in red), respected it and bounced lower from this zone. The price then moved lower further and broke below the last low at 151.163 thus forming lower lows based on the MACD indicator, which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bearish pressure. Also, we had a strong support zone and the price which was moving lower has broken below this zone and is holding below it. We may consider this as yet another evidence of bearish pressure. Currently this strong support zone is acting as a strong resistance zone for us. Until this resistance zone (marked in green) holds my short term view remains bearish here and I expect the price to move lower further”.
You can find a detailed explanation regarding this here: GBPJPY Short Term Forecast Update And Follow Up
Gold – My idea here was “On the H4 chart, we have a strong resistance zone that has formed and the price which is moving higher is currently nearing this strong resistance zone. Also, the 200 moving averages coincides in the same level which makes this area a key resistance zone for us. In addition to this, we have a bearish hidden divergence that has formed between the first high that has formed at 1831.70 and the second high that has formed at 1782.51, followed by a continuing bearish divergence based on the MACD indicator. We may consider these as evidences of bearish pressure and also currently there are no signs opposing this bearish view. So in my POV, based on all this, there are two possible scenarios from here. The price might directly move lower from the current zone or alternatively the price might create one push higher, reach the key resistance and then it might bounce lower from this zone. In either ways my view remains bearish here until the key resistance zone holds”.
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To your success,
Vladimir Ribakov
Certified Financial Technician
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