The pair was driven higher in early trade yesterday only to find resistance at the 1.0930-40 resistance zone. 1.0900 has been successfully defended by the bulls and they seem poised to retest the 1.0930-1.0940 significant resistance zone which opens the way for 1.0950 and ultimately the 1.100 handle. A sustained break below 1.0900 will see bears look to capturing 1.0800 with support at 1.08750 and 1.0850 in their way first.
The GBPUSD has been ranging in a 90 pip range since last week, which is considered very low volatility for the pair as the battle for 1.4900 continues. Range trading is expected to continue with resistance found at 1.4900, 1.4925 and 1.4950 and support at 1.4878, 1.4865-60 and 1.4850.
Gold was driven higher all through Monday only to stall at the 1079.50 resistance level, if bulls manage to break through 1079.50 we would see 1085 and 1090 coming under fire. A close below 1078, would see bears rush to drop the price to 1067 as there is little in the way of support before then. The next support levels are at 1058 and 1050.
The pair has retraced 50 % of its recent attempt at breaking the 131 support level. It is currently trading just below the bullish channel with a close outside to signal more selling pressure as bears look to regain control as they test 131.70 and 131.40 on their way back to 131. However, a break above 132.45 will see bulls look to test 132.70 and 133.