EURGBP has pulled back from the high it achieved on the first trading day of January at 0.89182. It has fallen back to the area of the moving average cluster around 0.88600 on the 4-Hour chart. This has pushed the price out of the rising channel, with a low at 0.88477. Should this low be broken, the next support can be found around 0.88000 and the 0.87917 level. A retest of the channel bottom will decide the outcome of where the price travels to next. If the retest is successful and the price stays below, traders can point to the green Doji candle at the high as a signal of the current pullback having strength. This can result in a test of 0.87575 or even 0.86901.
Should the price manage to regain the channel at 0.88677, the resistance to look to is 0.88900. This can see the bottom of the channel retested again before another leg higher to test resistance at the high and the channel top of 0.89237.
The precious metal has had a stellar start to 2018, rising to a high of 1320.580. This follows the break above 1300.00 in the final hours of last year. Dollar weakness has led to a tailwind for gold and combined with seasonal demand, the price has moved higher from the lows at 1236.446. The rally higher accelerated further when the blue rising trend line was broken and the moving averages were left behind. In the low liquidity holiday market, 1300.00 was easily overcome.
The supporting trend line in red carries the trend higher for now. Any loss of this trend line points to a retest of 1300.00. For now, the price is supported by 1311.141. Further support can be found at 1289.496, close to the 50 period MA, and 1276.965, close to the 200 period MA. Below here, traders will look to the 1265.259 level.