Reversal Patterns in GBP Pairs, Inside Bars in Gold and Silver

In today’s daily chart watch we are looking at a potential reversal in the British Pound. We’ve also got interesting inside bar patterns to look at in gold and silver and some well formed chart patterns in EUR/USD and GBP/JPY. Let’s jump into it.

In both gold and silver, price has been consolidating at the bottom of a downtrend with a series of inside bars (bars contained within the previous bar).

The pattern indicates that the market could be ripe for a breakout above the high or below the low of the ‘mother bar’ (the bar containing the others).

Sterling has been taking a beating in recent days amid fears of a ‘no deal’ Brexit. However, the market is showing signs that the pound may be due for a bounce. Hammer (bullish reversal) patterns are forming on the GBP/USD, GBP/AUD and GBP/CAD daily charts.

Meanwhile a shooting star (bearish reversal) is forming on the EUR/GBP chart. A nice pin bar reversal already formed on the 4 hour chart.

EUR/USD is contained within a descending triangle pattern and has been drifting upward with rising momentum.

However, bears are looking for a potential breakout to the downside, eyeing the yearly low of 1.1508 and the major 50% retracement level at 1.1447 .

In the volatile GBP/JPY pair a well defined wedge pattern has formed, presenting potential breakout opportunities in days to come.

Trading involves substantial risk of loss and is not suitable for all individuals. Past Performance is not indicative of future results.