January 3, 2022

Weekly Technical Outlook: Resistance Zones for Bitcoin, GBP/JPY, and Brent Crude Oil

 Welcome to a new trading year!


If one of your resolutions is to catch more trading opportunities, then you’ll definitely want to check out what’s brewing on BTC/USD, GBP/JPY, and Brent Crude’s longer time frames.


Let me know if you’re also watching the same resistance zones!


BTC/USD: Daily

Bitcoin breaking below a trend line support and trading below the daily chart’s 200 SMA is NOT a good look for the HODLers out there.



Luckily, $46,000 is a major area of interest for the king of crypto and it doesn’t look like the bears are committed to drag BTC/USD consistently below the level just yet.

Watch the tug-o-pips around Bitcoin’s current levels!


A clear bounce from $46,000 could push BTC/USD back above the $50,000 mark and maybe inspire a visit to the $55,000 zone near the 100 SMA.


Sustained trading below the $46,000 mark, however, could bring traders to the bears’ yard and drag BTC/USD to the $35,000 – $40,000 area. Yikes!


GBP/JPY: Daily

Range traders huddle up! GBP/JPY is a hair’s breadth away from the 156.25 zone that has held as resistance at least twice since mid-2021.


Now that Stochastic is flashing an overbought signal, you can bet that at least some bears are eyeing a trip lower.


A rejection at 156.25 opens GBP/JPY to a drop to the 152.50 mid-range or even the 149.50 range support levels.


If Guppy breaks above the range resistance, however, then you can start aiming for the 162.00 – 163.00 previous areas of interest.


Brent Crude Oil: Weekly


Brent crude oil failed to break above 2018’s highs and now the U.K.’s oil benchmark may be topping out on the weekly time frame.

That’s right! After at least two failed attempts to break above the $80 – $85 zone, Brent crude could be forming a Head and Shoulders pattern.


Look out for consolidation or rejection around the current levels, which could lead to a dip down to the pattern’s “neckline” and then a downside breakout to the 200 simple moving average.


If Brent crude successfully busts above December’s highs, though, then we might see the commodity make another run for the $80 – $85 resistance zone.