S&P500: Potential Drop Ahead?

<p>Good day,</p>
<p>Currency pair GBP/USD has pulled from the 1.2750 resistance level and dropped. The asset is currently approaching the broken downtrend away from which it might potentially jump. The broken downtrend is right next to the 1.2000 psychological level, which might also make the currency pair jump:</p>
<p><img class="alignnone size-large wp-image-45661" src="http://blog.tickmill.com/wp-content/uploads/2020/06/1-17-1024×475.png" alt="" width="1024" height="475" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/1-17-1024×475.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/1-17-300×139.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/1-17-768×357.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/1-17.png 1094w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p>Based on the latest reports by COT CFTC, large operators keep decreasing their short positions and slowly expanding the long ones, slowly pushing the net long position (long-short) to enter the positive zone:</p>
<p><img class="alignnone size-large wp-image-45668" src="http://blog.tickmill.com/wp-content/uploads/2020/06/2-3-1024×527.jpg" alt="" width="1024" height="527" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/2-3-1024×527.jpg 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/2-3-300×154.jpg 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/2-3-768×395.jpg 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/2-3.jpg 1137w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p>American stock index S&amp;P500 broke the 3138.00 level, however failed to hold the position; leaving the bullish trap for the market to tackle. Having repeatedly tested the level and pulled back from it, the asset might drop till the 2933.00 supporting level and jump. It could also break the horizontal at the 2933.00 level, dropping to a very strong resistance level of 2790.00 and then has the potential to jump:</p>
<p><img class="alignnone size-large wp-image-45663" src="http://blog.tickmill.com/wp-content/uploads/2020/06/3-7-1024×475.png" alt="" width="1024" height="475" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/3-7-1024×475.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/3-7-300×139.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/3-7-768×357.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/3-7.png 1094w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p>In the daily chart, the price of the Canadian dollar broke the level of 1.3855 and uptrend. Currently the asset’s price is getting back to the crossing point of broken lines, therefore the currency pair could potentially drop at the resistance level of 1.3855. A small bullish flag is forming right now, and this is the place the asset will target in the resistance zone at the level of 1.3855:</p>
<p><img class="alignnone size-large wp-image-45670" src="http://blog.tickmill.com/wp-content/uploads/2020/06/4-1024×475.jpg" alt="" width="1024" height="475" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/4-1024×475.jpg 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/4-300×139.jpg 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/4-768×357.jpg 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/4.jpg 1094w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p>Let us remind you that this material is provided for informative purposes only and cannot be considered as a direct go ahead to implement transactions in the financial markets. Trading in the financial markets is very risky.</p>
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