Despite what appeared to be a selling climax during the last week of September and a subsequent rally and pullback in price that managed to hold support at the Lower Warning Line of the Schiff Modified Pitchfork (gold LW1), I remain nonetheless unconvinced that the longer-term downtrend has run its course. Shorter term I am watching the Sliding Parallel (gold SP) and the Median Line above that that marks short term resistance. The downtrend, i.e. the vector of the selloff from the 2021 highs remains intact. Only if Cable is able to rally above and overtake the cluster of multiple resistance at, but not limited to the Sliding Parallel (gold SP), the Median Line of the Schiff Modified Parallel (gold dotted line), TDST Resistance at 1.175 (red horizontal line) and the top of the Cloud would we consider that the GBP is potentially out of the woods! Those hurdles will be a tough road to hoe and only time will heal the wounds of the prolonged selloff that has been in place since the summer of 2021.
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