Welcome to the last full trading week of May!
Start your week strong with potential breakout plays on Cable, WTI crude oil, and BTC/USD.
Check their 4-hour and daily charts out!
GBP/USD: 4-hour
Cable finally found support around the 1.2200 psychological area after falling below the big 1.3000 in late April!
GBP bulls are in for an interesting time as GBP/USD tests the “neckline” of a Reverse Head and Shoulders on the 4-hour time frame.
They already busted through the 100 SMA and it looks like they might soon test the 200 SMA resistance.
A rejection around the 1.2600 area could lead to a dip back down to the 1.2400 – 1.2500 zone.
If the bulls manage to maintain their momentum, however, then we might just see a retest of 1.3000 broken support area.
WTI Crude Oil: Daily
Don’t look now, but U.S. WTI crude oil looks ready to retest its previous highs!
WTI crude broke above (and successfully retested) a descending triangle resistance when it found support below 100.00.
The commodity is now trading closer to 110.00 after encountering some resistance at 115.00.
Watch the 115.00 May resistance closely to see if there’s enough selling pressure at the level to prevent another trip to the 126.00 – 128.00 highs!
BTC/USD: Daily
Since November 2021 Bitcoin has broken below a Double Top pattern and then a trend line support.
Think it will see another downside breakout?
BTC/USD is trading in a verrry tight bearish pennant pattern near the 30,000 area of interest.
If the pair breaks to the downside, then we could see the king of crypto get dragged down to previous areas of interest near $25,000 or even the $22,000 zones.
A bounce from the $30,000 levels, however, could lead to a bullish run all the way to the $40,000 broken trend line and 100 SMA levels.
