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The precious metal has broken out from its descending wedge around 1331.00 and moved higher to create a lower high at 1361.80.The price then dropped back lower to support at 1344.16. Resistance above can be found at 1361.80 and the January high at 1365.30. A break above this resistance targets 1375.50 and 1389.00 with a large resistive zone around 1400.00. However a break above 1412.50 clears the way towards 1450.00 and 1464.00.
Support on the chart can be seen at 1344.16 with the 50 period MA below at 1339.74 and the 100 period MA at 1335.90. The next level of support then comes in at 1333.66 and then 1327.5, which is the level that the 200 period MA is currently at. The descending red trend line top of the wedge is currently around 1322.00. The 1320.00 has been used as support on a number of occasions over the last two weeks and below this level is 1311.41. The support area around 1300.00 has been used on the many times in the past number of years and continues to impact price moves.
4 Hour chart
The pair has formed a descending broadening wedge since late January as it follows developments with the recent Stock market decline and economic data releases. Weakness in the US Dollar has been a strong theme but the UK Economy is flagging warning signs as the Brexit choke hold continues. On Friday UK Retail missed expectation to the downside. The Inflation Report Hearings will take place on Wednesday afternoon and this will provide an insight into BOE thinking on future monetary policy.
Resistance for the pair can be found at the red trend line wedge top around 1.41378. Above this level resistance is coming in at 1.41796 and this year's high of 1.43450. Further on above these levels 1.45187 can prove difficult with 1.46626 and 1.47690 in extension. Supports below the current price level come in at 1.40000 and 1.38354 with the 50 DMA at 1.37849. The September high of 1.36568 is a significant level on the daily chart with a move below here suggesting a more sustained drop. The 100 Day MA is found alongside the wedge bottom at 1.35752 with 1.34500 below containing the rising Black supporting trend line. The 200 DMA is found at 1.33456 with the 1.32246 and 1.30586 support levels below.
Daily chart
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