DAILY TECHNICAL ANALYSIS FOR FEBRUARY 01, 2022petar skakalov
Current level – 1.1231
During the first trading session of the week, the currency pair breached the resistance level of 1.1170 and, at the time of writing, is headed towards a test of the next resistance at 1.1235. In case the bulls violate this resistance level, then the corrective phase would develop and the pair would head for a test of the next resistance zone at 1.1287. Alternatively, if 1.1235 withholds the bullish pressure, then we might witness a short-term consolidation in the zone between 1.1170 and 1.1235. Today, heightened activity can be expected around the announcement of the ISM manufacturing PMI data for the United States at 15:00 GMT.
Current level – 115.02
The currency pair is consolidating in the zone of 115.00 – 115.60 following the unsuccessful test of the resistance level at 115.60. At the time of writing, the pair is headed for a test of the lower border of the range. In case the support at 115.00 is violated, then the corrective movement would gain momentum and we would probably witness a test of the next support at 114.68. If the bears fail to breach the support at 115.00, then the pair would likely continue to trade within this range.
Current level – 1.3441
After the massive selloff during the last week, the Cable managed to bounce back from the support zone at 1.3370 and is now headed towards a test of the resistance level at 1.3444. A possible breach of this level would facilitate the bulls’ attack on the next resistance levels at 1.3520 and at 1.3571, respectively. If, however, the resistance at 1.3444 withstands the bullish pressure, then the short-term retracement would be complete and a new test of the local bottom at 1.3370 would be the most likely scenario. Today, an increase in activity can be expected around the announcement of the manufacturing PMI data for the UK at 09:30 GMT.
Gold price tests the resistance
Gold price provided positive trades yesterday to test the key resistance 1797.00, keeping its stability below it until now, accompanied by witnessing clear overbought signals through stochastic, waiting to resume the bearish bias and head towards 1770.00 that represents our next main target.
Therefore, the bearish trend scenario will remain valid and active until now, noting that breaching 1797.00 – 1800.00 levels will stop the expected decline and lead the price to start new recovery attempts that target 1825.15 areas initially.
The expected trading range for today is between 1780.00 support and 1810.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis