GBPUSD and EURUSD are up sharply in the last 30 minutes on what appears to be month-end fixings, which tend to be short-term in nature. That is when international money managers rebalance their currency hedges in their stock market portfolios.
The move higher in the GBPUSD helped to cement the breakout from the triangle pattern that has been dominating the Pound Sterling over the last few weeks. The pattern is constructed by drawing a downward sloping trendline via the December 31 and January 23 highs, and an upward sloping trendline via the December 23 and January 28 lows.
The difference between the two trendlines on January 14 is 254 pips and produces a target of 1.3359 on a break to the upper trendline on January 30. The short-term trend in the GBPUSD will remain upwards as long as the price trades above the January 30 low of 1.2975. A correction to the 1.31 will probably attract Forex traders wanting to enter the trend at a level that offers a good risk-reward ratio.
As long as the trend remains upwards, the price might be able to reach the December 31 high of 1.3285, followed by the triangle pattern target at 1.3359.If gold prices were to trade above the October 25 high of $1518.41, then the price might be able to reach the $1563.14 level, as the difference between the upper and lower limit of the pattern is added to the October 25 high. On a break to the October 11 low at $1473.68, the price might be able to reach the $1428.95, as the difference in the range is subtracted from the October 11 low.
Time will tell if bullish or bearish traders will command price as the chart pattern itself is neutral in its outlook.