GBP/USD- Symmetrical Triangle pattern formed – will you trade

Focus: the resistance at 1.6051 remain in focus as a major obstacle and the pair needs to break this resistance to confirm further upward trend. The immediate support is near the 1.5891 zone.

Strategy in Play:

The GBP/USD is trading in a symmetrical triangle on a 30 minute time frame. If the price breaks this pattern to the upside, we could see the price near the 1.6069 level. Moreover, the price is trading above the 50 day (shown in green) and the 100 day (shown in yellow) moving average which confirms that the bulls are in strong control.

The RSI is trading in-line with the price action which means that the bias could be to the upside.

COPPER- Fundamental And Technical Analysis

Fundamental

Uncertainty over the US political deadlock is heavily influencing the demand for Copper which is under constant punishing pressure. One would think that there could have been a possible resolution between the Democrats and the Republican, but obviously given the circumstances, it seems a very naïve and optimistic hope and the result of this is gruelling the commodity market.

Unquestionably, the politicians in Washington need to stop playing this rotten game with the markets and stop testing the exhaustion level of traders. The budget talks which are heading towards the final chapter of this long drawn out saga could even fail in this phase as well, as there are still tensions between the Democrats and the Republicans over the sequester cuts.

US political deadlock punishing the markets while Chinese Imports improved

The irrational gains in the equity market which we’ve seen towards the end of the last week on the back of the optimism that there could be a resolution over the US debt ceiling has evaporated this morning. Thanks to the violent reaction shown by the angry traders this morning who are pushing the sell button, as we head towards the third week of the US government shutdown with no resolution insight.