Gold Update

Gold gained back almost half of its downtrend from 1795.10 (Oct 5th high) to 1671.90 (Nov 5th low) after Obama reelected for second term. Oscillator indicates overbought but there is no sign of trend continuation yet. So I expect consolidation pattern to emerge before a breakout to test the November 5th low at 1671.90. Break from that support level would suggest a-b-c correction pattern of its larger scale trend (uptrend) targeting 1642 (61.8% retracement) and 1600.3 (78.6% retracement).

XAU/USD 4 Hour Chart - Multiple downtrend continuation scenario

GBPUSD Follow Up

The market decided to screw me shortly after my last post. GBPUSD turned sharply after the PMI release. I decided to get out of the market during this pullback from euro session high just now. It could return to test the support level but I didn't like my level of exposure. You gotta trade the plan right?

My next move is to short cable again if the support breaks (grey area). 1.6127 will be my risk level while my target remain the same (see previous post).