Weekly Technical Outlook: Reversal Patterns on WTI Crude Oil & GBP/USD, Next Bullish Target for ETH/USD
Start the trading week off with a look at these swing setups!
Can ETH/USD and WTI crude oil sustain their bullish momentum?
And will Cable join in on the rallies, too?
GBP/USD is completing its inverted head and shoulders on the daily time frame, and it’s already testing the neckline resistance.
A break above this upside barrier could set off a rally that’s the same height as the chart pattern, which spans approximately 2,000 pips.
I know I wouldn’t wanna miss that! But what are technical indicators saying?
The 100 SMA is still below the 200 SMA for now, which means that there’s a good chance the downtrend might resume. Then again, the gap between the moving averages is narrowing, so I’d keep an eye out for a bullish crossover.
Stochastic is indicating overbought conditions or exhaustion among buyers, so heading south might also attract more sellers.
ETH/USD busted out of its descending triangle pattern a couple of weeks back. Just how high can it go from here?
Looking at the daily chart reveals that the next potential ceiling is located at the key $2,000 barrier, which has held as strong resistance since mid-2022.
Stochastic is already hovering around the overbought region to suggest that buyers could take it easy soon and let sellers take over. If that’s the case, a quick dip to the nearby support levels at the moving averages might be in the cards.
Also, don’t forget that the 100 SMA is still below the 200 SMA to reflect the presence of bearish vibes.
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Now here’s a reversal chart pattern that’s already starting to play out!
Not only did WTI crude oil bust through the neckline of its inverse head and shoulders, but it also completed a retest of the broken resistance.
Technical indicators are pointing to more gains as well, with the 100 SMA already crossing above the 200 SMA to signal that the path of least resistance is to the upside.
This could clear the way for a rally that’s the same size as the formation, which spans from $72 per barrel to $78 per barrel.
Stochastic is heading north, so crude oil price could follow suit while upside pressure is in play. Just be careful since the oscillator is closing in on the overbought region to reflect exhaustion soon.
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