Weekly Price Action Setups & Key Levels | Feb 28 – Mar 4

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Gold – Large Corrective Structure, Still Bullish Bias For Now (4hr chart)
One of the more impulsive bull runs this year has been in gold which is up over $150 since the start of the year. For most of this month the shiny metal has been in a large corrective structure between 1250 and 1200 at the top of the latest bull move.

This is a redistribution (or rebalancing) phase in the order flow. The width suggests there is a lot of it going on now with the bulls having a slight edge in bias with the higher lows.

For now I’m keeping my bullish bias while this structure remains. A break of 1250 targets 1300.

However a breakdown and daily close below the structural support means likely further unwinding of medium and short term bulls. This could lead to a move towards 1150 and 1125 before bids step back in.

gold price action 2ndskiesforex

GBPJPY – Profit Taking + Short Squeeze But Bearish Bias Remains (4hr chart)
After dropping over 500 pips last week, we can see the pair has bounced impulsively a few hundred pips since. Looking at the selling down towards the 155 handle, we can see some exhaustion price action which usually results in a strong bounce.

To me what we are seeing from the bounce is some strong profit taking + a short squeeze in the order flow. For now I’m keeping my MT bearish bias while below the key role reversal level around 160 on a daily closing basis.

Hence until we get a daily close north of 161, I’m looking to sell between here and the role reversal level for an expected move back down towards 155 and potentially the 150 big figure.

gbpjpy role reversal level 2ndskiesforex

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