DAX Index Picking Up the Momentum
The German index – Dax has broken its upward channel (shown in light blue colour) on a 4-hour time frame. Since then, the price has made only lower highs and lower lows. These lower highs are joined together by a downward trend line shown in orange. The trend line confirms that the trend is skewed to the downside. The price of the Dax index is trading far from the downward trend line and the recent price action shows that the price is moving higher. The current bull momentum has been able to push the price above the 50-day moving average (shown in yellow) and the next resistance would be the 100-day moving average.
The RSI and Balance of Power are showing that the bulls have control of the price and it is likely that the price would test the resistance line (shown in red).
GBP/USD: Double Bottom?
The GBPUSD pair has reached a critical level on a 4-hour time frame. The price has entered in a small resistance zone show by a red rectangle on the chart. On the left-hand side, we have a small lower high formed (on the 25th July) and this is the first time the price has entered this area of resistance. At the same time, we also have double tops formed (show by two blue colour arrows). Double top
As for the trend, the bulls are in control of the price and the confirmation of this comes in two folds; the price is trading above the upward trend line shown in orange colour and it is also trading above the 50 and 100-day moving averages shown in yellow and green respectively.
The RSI is showing that there are chances that the price may retrace may back from this level and the confirmation of this will be if the RSI breaks below the trend line show on the RSI chart.
