I am not one to discuss fundamentals or macro views, but this situation in Europe is beginning to morph into a media frenzy. Price action in the marketplace is changing rapidly in short periods of time based on the latest press releases coming from the Eurozone summit.

This week the GBP USD has been the most volatile currency pair out of the majors. We saw the GBP USD break above the 1.6342 minor resistance line and hit the 1.6400 high. The currency pair ended the week on a 3 days downtrend and on Friday it hit the 1.6005 low. The currency pair retracing back from hitting the high is a natural phenomena that occurs in currency trading.

The markets and gold in particular have kept traders on their toes this week. Gold is looking to find support levels while the SP500 continues to push its way higher. Let’s take a look at the charts and our current analysis to get better feel for what is happening with gold and the SP500.

Gold 4 Hour Chart

The S&P 500 has seen remarkable recovery from the lows that were seen earlier this year. However, all of that may come to an end as we fast approach a strategic level for this market. There are two major technical indicators that are colliding at a crucial point and time. Unless you’re aware of these indicators, it could be very expensive.