Looking at the XAUGBP market to give some clues as to the resolution to the standoff in XAUUSD. Price has come back to the POC at 1508 only to see the trading volume just lower puch the POC down a tad. Maybe nothing but could give a clue that further downside in XAUUSD may be afoot.
Do we test long on this pair? What do you think?.
You have to be careful and analyze the price action before making the decision. We must think that nobody knows what will happen. I'm just trying to put the odds in my favor. Then the price will do what it has to do. So let's see what happens.
I think Gold is going to revisit the 1300 level in GDP, I am looking to enter longs between 1300-1320. Any unexpected event in the economy favouring Gold can put this off.
I think if the market sells off hard into a deeper bear market, it could take Gold with it too, in that case the Gold could deep lower than 1300, which would be an amazing opportunity, however...
This is a possible area for an entry in the Gold run, IMO Gold ain't gonna go lower that that, it is just taking a break from the last 2 days run. The next coming months will be all about Gold.
Gold Reversed against GBP and JPY
We can observe that the XAUJPY dropped faster than XAUGBP,
therefore we can consider to sell XAUGBP
by using XAUJPY as our "indicator"
XAUJPY already falls to Point A
so we can expect the XAUGBP will fal to Point
A' as well.
I have strong buy bias in the pair as all signals point to uptrend momentum. Also, price just broke out of resistance and formed RBR pattern. Buy when price retest support and demand zone.
