Gold Relinquishes Key $2,000 Floor, GBP/USD Held Captive by Critical Trendlines
GOLD PRICES TECHNICAL ANALYSIS
The critical trendlines have captured GBP/USD, while gold has relinquished its significant $2,000 floor. The academic context suggests that currency fluctuations and gold prices are closely monitored and analyzed by scholars. The original statement is presented in a concise manner and can be easily understood by the intended audience. Thus, the rephrased statement should maintain clarity and brevity while using appropriate academic language.
Gold has experienced a decline in value, resulting in the loss of the $2,000 level according to technical analysis. This development may indicate that investors who were previously bullish on gold are now withdrawing their support. Failure to reclaim this threshold by XAU/USD could result in a shift towards more negative sentiment and potentially lead to a drop towards $1,975. If weakness persists, attention will shift towards the level of $1,920.
If buyers can take charge of the market and push prices above $2000, the metal may regain its stability. This could lead to an initial surge towards $2,050, followed by a push towards $2,070 – the last barrier before setting new all-time highs.
GOLD PRICES TECHNICAL CHART
GBP/USD TECHNICAL ANALYSIS
The GBP/USD currency pair has experienced a significant increase in value since the beginning of March. However, this bullish trend has started to weaken as the pair failed to surpass the resistance level of 1.2680 and has since retreated. This retreat was caused by the pair being pushed lower by a descending trendline that extends from its high point in 2021.
The technical outlook for cable appears positive, but this may change if the support at 1.2440 is not defended by buyers. This support area coincides with a rising trendline over the medium-term and several swing highs from last year and early 2023. Should this support level be breached, sellers may initiate a decline towards 1.2355, followed by 1.2285. If weakness persists, a significant pullback towards 1.1975 cannot be discounted.
Dynamic resistance is found at 1.2620 in the event of a bullish turnaround. To have a chance of recapturing 1.2680, it is necessary to sustain movement above this level. If both barriers are overcome, bulls may be encouraged to challenge the 61.8% Fib retracement of the 2021/2022 selloff, which is at 1.2765.
GBP/USD TECHNICAL CHART
