Gold price and Brent crude price on cusp of potential bullish break
Gold and Brent crude expected to rise further after a recent period of consolidation.
Gold rallies back towards major breakout zone
Gold has been in a very consistent uptrend over the course of the past two months, with July seeing the precious metal hit the highest level since 2011. However, we have seen the price consolidate over the past week, as the price seemingly pauses ahead of another leg higher.
A rise through the $1815 level would bring about a fresh bullish signal within a wider uptrend. However, until that break occurs there is a chance we could see another move lower to continue the consolidation seen over the course of the past week.
Brent pullback unlikely to last given wider uptrend
Brent has struggled to break through the $43.96 zone over the past month, with last week highlighting that same difficulty to the upside. However, the lower part of the trend remains consistent, with higher lows in place unless we see a break below the $41.39.
With the ascending trendline and 50% Fibonacci support level coming into play today, we are seeing the price rise once again. Thus, there is a good chance we could see another challenge of the $43.96 resistance level from here. However, ultimately we will need to see the price break through either $41.39 or $43.95 to signal the directional bias from here on in. With the stochastic oscillator moving into oversold territory, there is a strong chance that break could come to the upside.
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