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The 55– and 100-hour SMAs have guided the yellow metal since the massive fall on June 15. The pair's movement has become more stable during the past few days which might point to a possible change in sentiment this week.

Technical indicators on the larger time-frames are starting to recover; however, the price has failed to follow. It seems that these two moving averages could continue guiding the pair in this session, as well, especially if some downward potential still exists in the market.

The nearest support level is the monthly S2 at 1.260.00, while the junior channel line is likewise located nearby. In case the above resistance is breached, a surge should follow up to the monthly S1 and the 200-hour SMA circa 1,280.00.

The Aussie dollar remains at the back foot on Tuesday and pressures lower pivots at 0.7399/94 (5SMA / base of thick hourly cloud) following Monday’s close in red after repeated upside failure which left a double-top.

Falling 10SMA capped the action and continues to pressure (currently at 0.7428) as daily studies show MA’s in bearish configuration and 14-d momentum heading south, deeply in negative territory.

Negative sentiment is helped by risk-off mode and close below 5SMA / hourly cloud base would be negative signal for possible extension towards key supports at 0.7345/25 (19/21 June base / Fibo 61.8% of larger 0.6825/0.8135 ascend).

Immediate downside risk could be sidelined on close above 10SMA, but break and close above 0.7472 (Fibo 38.2% of 0.7676/0.7345 bear-leg) is needed to confirm continuation of recovery from 0.7345 base.

Res: 0.7428, 0.7443, 0.7472, 0.7511
Sup: 0.7394, 0.7383, 0.7368, 0.7345

UK Chancellor of Exchequer Philip Hammond said today that "I very much hope that we can avoid a full scale trade war (because) that would be a disaster for everyone, not least for the United States". He added that "but what I can say is this: whatever happens the UK will remain an outspoken proponent of open markets and free trade, low tariff barriers and low non-tariff barriers."

Also Hammond said that "we live in uncertain times because the old certainty for many decades has been that the United States was completely wedded to open markets and free trade."

The GBP/USD is range bound between the two essential pivots W L3 and W H3. Intraday price action is also trapped between D H3 and D L3. In the chart, we can see the two opposing patterns. Head and Shoulders and Inverted Head and Shoulders. Camarilla Pivots constellation is also showing ranging market. Everything we see cues for an indecisive market. In that case, we have few scenarios. Above 1.3300 the target is 1.3320 and continuation should spike the GBP/USD to 1.3350. Below 1.3260 the target is 1.3204 and below we should see 1.3145.

W L3 - Weekly Camarilla Pivot (Weekly Interim Support)

W H3 - Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 - Weekly Camarilla Pivot (Strong Weekly Resistance)

D H4 - Daily Camarilla Pivot (Very Strong Daily Resistance)

D L3 – Daily Camarilla Pivot (Daily Support)

D L4 – Daily H4 Camarilla (Very Strong Daily Support)

POC - Point Of Confluence (The zone where we expect price to react aka entry zone)

XAUUSD (1264.45): Gold prices failed to capitalize on the modest gains made as price action was seen giving up the gains. Gold prices extended the declines and can now be seen retesting the previously established lows of 1263. A rebound off this support level could potentially a bottom taking shape with the 4-hour Stochastics currently posting a higher low against the lower low in price. The resistance level near 1282.50 is the most likely upside target. However, if price breaks down below 1263 then we can expect to see further declines pushing the price down to 1250.00 level of support.

USDJPY (109.47): The USDJPY currency pair was seen extending the declines as price action was seen consolidating near the support level of 109.57 - 109.43 region. A breakout from this support level could signal further declines as USDJPY could be seen falling to the lower support level at 108.90. To the upside, the gains are likely to be limited to the rising trend line which could now act as dynamic resistance. This also coincides with the minor resistance level likely to be formed near 109.95 region.

EURUSD (1.1714): The EURUSD currency pair was seen extending the gains on Monday amid lack of any clear fundamentals. The currency pair was seen rising to intraday highs marking a 7-day high. With price action seen approaching the resistance level of 1.1730 and with the 4-hour Stochastics posting a hidden bearish divergence, we expect to see some near-term declines. The support at 1.1610 remains in sight as price action is likely to establish support at this level ahead of further gains. If the EURUSD breaks out above 1.1730, then we expect to see the gains extending to the next resistance level of 1.1846 - 1.1824.

The U.S. dollar was seen trading mixed on Monday as the currency pair managed to ease back against the euro currency and was also seen trading weaker against the Japanese yen. Compared to other currencies including precious metals, the Greenback managed to hold its ground.

Economic data was limited on Monday with only the new home sales report showing an increase of 689k which beat estimates of 665k increase.

Looking ahead, the economic calendar is relatively quiet for the day. From the Bank of England MPC members, Haskel and McCafferty are expected to speak over the day. McCafferty was one of the dissenting votes at last week's BoE meeting who voted in favor of a rate hike. Therefore, his comments could be on the hawkish side.

Data from the Eurozone is quiet and in the U.S. trading session the S&P/CS housing price index data is expected to be released. The conference board will be releasing its consumer confidence data which is expected to slip slightly to 127.6.

FOMC member, Bostic is due to speak later in the evening.

The pair remains in red in Asia/early Europe on Tuesday and probes again into thick daily cloud, following unsuccessful attempt on Monday. Risk-off mode keeps the dollar under pressure, as Monday's eventual close below 20SMA after four straight failures, was bearish signal. Probes into daily cloud (cloud top lays at 109.66) were so far contained by rising 55SMA (109.38) which guards next pivotal support at 109.17 (Fibo 61.8% of 108.11/110.90 ascend). Firm break here is needed to generate stronger bearish signal for further weakness. Strong bearish momentum and multiple MA's bear-crosses maintain pressure. Alternative scenario needs repeated close above daily cloud and extension above 20SMA 109.92 to sideline immediate downside risk.

Res: 109.78, 109.92, 110.18, 110.75
Sup: 109.50, 109.38, 109.17, 108.77

Cable traded within tight range in Asia on Tuesday, capped by 20SMA for the third straight day, which could increase risk of reversal on repeated failure.

Negative momentum studies and overbought slow stochastic keep near-term risk skewed lower but bearish scenario requires confirmation on close below 10SMA (1.3254).

This could open way for further weakness through Monday’s low at 1.3221 which could extend towards key support at 1.3101 (21 June low).

On the other side, hopes for fresh attack at 20SMA barrier remain alive while near-term action holds above 10SMA / top of thick hourly cloud (1.3255).

Res: 1.3290, 1.3308, 1.3330, 1.3384
Sup: 1.3255, 1.3243, 1.3221, 1.3204