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Cable and FTSE start 2018 in a good mood. DAX quite the opposite

Tomasz Wiśniewski

2018 starts with the continuation of the signals triggered in the middle of December and confirmed in the last week of 2017, right after Christmas. GBPUSD defended the long-term up trendline and bounced from the horizontal support on the 1.331. After that, the price broke the upper line of the wedge, which actually triggered a buy signal here. The potential target is around the tops from September.

If we are talking about GBP, let’s stay in the UK and analyze the FTSE index. Here we have a classical ascending triangle pattern, which resulted in a bullish breakout of the horizontal resistance. 2018 brings us a nice buy signal here.

FTSE is doing great, DAX not so much. Here, buyers have the last chance to keep the buy signal alive. We are in the long-term up trendline and on the lower line of the flag. In addition to this, we still have a chance to defend the 12900 support (sharp reversal creating a hammer candlestick). In this situation, a hammer would be a strong buy signal. On the other hand, a breakout can be lethal, with a creation of a major sell signal.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire