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GBPUSD Bearish Divergence. Crude Near Key Level.

   

Welcome to this week’s Market Blast Technicals where we will look at Brent Crude (UK Oil), WTI (US Oil), GBPUSD, USDCAD, and USDJPY.

 

Last week we spotted this consolidation pattern on USDJPY.

We did get a breakout to the downside but price action seems to be forming a new downtrend.Screenshot 2021-01-26 at 10.49.58

If we zoom out to the daily chart, we see that this is just a continuation of the bearish run that started in March of last year.

We see a similar situation on USDCAD where price has just touched the upper trend line so we will wait for a bounce or a break to determine direction.

Yesterday we promised to take a look at the Pound from a technical standpoint.

We hope you spotted this Double Top this month in GBPUSD which predicted this price drop into the lower trend line.Screenshot 2021-01-26 at 10.50.31

GBPUSD looks like it is still rising but be aware of this Head and Shoulders pattern and watch the Stochastic Oscillator which is currently in a Bearish Divergence.

If we get a break below we have support at $1.355.Screenshot 2021-01-26 at 10.50.42

We see Brent Crude heading into this descending triangle with support at $54.50 per barrel.

If we look at the weekly chart on WTI we note that the current levels at $52 to $53 was a serious level of support 2 years ago.

Of course, we will need to see big changes in demand for Crude which, as we know, is being hindered by the Coronavirus pandemic.Screenshot 2021-01-26 at 10.50.55

In the short term, we see the down trend continuing.

Thanks for watching and don’t forget to subscribe to our YouTube Channel and register on the Valutrades website to get notifications on new content as it happens.

That’s all for now.  Happy trading with Valutrades and we will see you next week.

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Disclaimer:

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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